Triton buys 76% stake in Renk

Harriet Matthews
31 January 2020

Tweet
Facebook
LinkedIn
Google plus
Send to

Triton has offered to buy a 76% stake in Volkswagen-owned car gearbox producer Renk, following an auction process.

Triton's offer was made via Rebecca BidCo. The offer comprises the acquisition of 5.32 million shares in the company for €97.80 (up to €100 subject to dividends). VW currently stands to receive €530m from the sale.

Triton will invest in the company via Triton Fund V, its €5bn vehicle which held a final close in January 2019.

A source familiar with the situation told Unquote that the transaction will be financed with 100% equity but that Triton may aim to secure an additional debt component between signing and closing.

Triton has also made a voluntary public takeover to all shareholders of Renk to acquire their shares against payment of a cash consideration.

The same source told Unquote that the asset has shown stable growth and is continuing to expand its market position, adding that the GP will aim to expand RENK's service business and continue to build on the its digitalisation initiatives.

Unquote sister publication Mergermarket reported in January 2020 that Triton was the most likely bidder to acquire the target, having surpassed EQT's offer. The transaction reportedly also drew interest from KKR, Carlyle and Advent, as well as trade buyers Rheinmetall and Voith. Mergermarket reported in May 2019 that VW had begun to consider strategic options for Renk.

Company
Renk's roots can be traced back to 1873. It is based in Augsburg, with additional locations in Hamburg and Rheine. The company produces specialised gearboxes.

The company had a market capitalisation of €742m, according to Bloomberg. According to its annual report for 2018, it employs 1,994 staff and reported operating profit of €51m and sales revenues of €433m, compared with €410m in 2017. The company became part of VW when it acquired Renk's parent company Man Group in 2011.

People
Triton – Martin Huth (managing partner).

Advisers
Equity – Latham and Watkins (legal).
Vendor – Citi (M&A).