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Renishaw ends formal sale process
7th Jul 2021 08:23
(Sharecast News) - Renishaw has abandoned plans for a potential sale, the specialist engineering group said on Wednesday.
The FTSE 250 firm put itself up for sale in March after its founders - executive chairman David McMurtry and non-executive deputy chairman John Deer - said they wanted to sell their stakes. The two men, who are in their 80s, control 53% of the group.
But on Wednesday Gloucestershire-based Renishaw said that having reviewed a number of proposals, none had met the board's objectives and it was therefore ending the formal sale process.
In a joint statement, McMurtry and Deer said: "While the formal sale process did not result in a new owner, we are satisfied that it ensured a thorough and rigorous process that enabled us to evaluate a wide range of potential buyers.
"We remain fully committed to Renishaw and have indicated to the board the at we have no intention of selling out shares on the market for the foreseeable future. We continue to enjoy good health, and as we consider the future of our shareholdings in due course, we intend to follow an orderly process that continues to take into account the interests of all stakeholders."
David Grant, senior independent non-executive director, added: "I am pleased that the founders have indicated their continuing commitment to Renishaw. The business is in a strong strategic and financial position."
The firm also provided an update on current trading. It said it had finished the year to 30 June with a "record" order book, and now expects revenues to be in the range of £562m to £567m. Adjusted pre-tax profits are forecast to be in the range of £116m to £121m.
The FTSE 250 firm put itself up for sale in March after its founders - executive chairman David McMurtry and non-executive deputy chairman John Deer - said they wanted to sell their stakes. The two men, who are in their 80s, control 53% of the group.
But on Wednesday Gloucestershire-based Renishaw said that having reviewed a number of proposals, none had met the board's objectives and it was therefore ending the formal sale process.
In a joint statement, McMurtry and Deer said: "While the formal sale process did not result in a new owner, we are satisfied that it ensured a thorough and rigorous process that enabled us to evaluate a wide range of potential buyers.
"We remain fully committed to Renishaw and have indicated to the board the at we have no intention of selling out shares on the market for the foreseeable future. We continue to enjoy good health, and as we consider the future of our shareholdings in due course, we intend to follow an orderly process that continues to take into account the interests of all stakeholders."
David Grant, senior independent non-executive director, added: "I am pleased that the founders have indicated their continuing commitment to Renishaw. The business is in a strong strategic and financial position."
The firm also provided an update on current trading. It said it had finished the year to 30 June with a "record" order book, and now expects revenues to be in the range of £562m to £567m. Adjusted pre-tax profits are forecast to be in the range of £116m to £121m.