INTERVIEW: Renold Seeking Acquisitions - CEO

8th Jun 2010 09:26

By Jason Douglas Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Chain maker Renold PLC (RNO.LN) Tuesday said it is on the hunt for acquisitions. Group Chief Executive Bob Davies told Dow Jones Newswires the company is interested in buying companies to grow both its chain business and its torque transmission unit, which makes gears, gearboxes, couplings and other products. "We are acquisitive at the moment," said Davies. There are opportunities for consolidation in the chain industry and Renold would be able to boost earnings by buying competitors and squeezing out savings by using its own factories, Davies said. The company bought chain-making businesses in India and China during the past two years to access new markets and gain some low-cost manufacturing sites. Davies added that an acquisition for the torque business would more likely focus on expansion into new markets. The nature and size of the deal would determine whether Renold paid for it with cash, borrowings, shares or a mix, said Davies. The company raised money from shareholders last year to trim its debts. -By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; [email protected] (END) Dow Jones Newswires June 08, 2010 04:26 ET (08:26 GMT)