Renishaw founders reject suitors and say they remain committed to its future

Renishaw QC20-W with lathe adaptor

Following the announcement in March that the founders of one of the UK’s most successful manufacturing and engineering companies wanted to take a well earned retirement and sell their substantial shareholdings in the business, the lack of a suitable purchaser has put their plans on hold.

In a statement issued today, the board of Wootton-under-Edge based Renishaw said it had “carefully reviewed a number of proposals with its advisers and unanimously concluded that none would meet the Board’s objectives of delivering an outcome that satisfactorily met the interests of all stakeholders.”

Sir David McMurtry and John Deer, both in their 80s, have said that they remain committed to Renishaw and have no intention of selling their shares on the market for the foreseeable future.

The Board said: “We have seen a strong trading performance in the final quarter of the financial year ended 30 June 2021 and finished the year with a record order book. We now expect revenue for the year ended 30 June 2021 to be in the range of £562 million to £567 million and adjusted profit before tax to be in the range of £116 million to £121 million.

Sir David McMurtry, Executive Chairman of Renishaw, and John Deer, Non-Executive Deputy Chairman, said: “At the start of this process we made it very clear that, with the Board, we were focused on ensuring that we find the right new owner for our business. Whilst the formal sale process did not result in a new owner for Renishaw, 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 that we have no intention of selling our 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.

“Renishaw is a very special business with a highly successful business model and a very exciting future. We would like to thank all our employees for their dedication to the Company.”

Sir David Grant, Senior Independent Non-Executive Director at Renishaw, added: “The Board conducted a formal sale process to investigate whether we would receive a proposal from a potential new owner that would be in the interests of all stakeholders. We received a number of proposals that we considered carefully but the Board has concluded that none of the proposals met our objectives.

“I am pleased that the founders have indicated their continuing commitment to Renishaw. The business is in a strong strategic and financial position.  Renishaw and its stakeholders have every reason to look to the future with optimism and confidence.  On behalf of the Board, I would like to thank our employees for their continued focus and commitment to Renishaw.”

Renishaw to put itself up for sale as founders seek to sell shareholdings