UK engineering and power transmission group Renold has acquired the business of Leicester-based grinding machinery maker Jones & Shipman in a £5.14m deal completed last Friday.
Together with Edgetek, the US maker of grinding machines, and Goodwin Electronics, the UK controls company, J&S becomes a wholly owned subsidiary of Renold. It will be part of the engineering products division, headed by managing director Dr Ronnie Kershaw.
Renold, which owns rotor grinding and measurement specialist Holroyd, sees J&S’s portfolio of abrasive grinding machine tools as complementing its existing business.
‘We intend to support the products and the engineering,’ said Kershaw.
J&S is seeking a cash injection to continue its large R&D programme. This has included £2m European-funded research with machine tool laboratory WZL Aachen into ultra-hard cubic boron nitride grinding techniques for the car industry and other customers.
Operationally, J&S remains an independent business based in Leicester under managing director Alan Spears and the existing board. Len Weaver has stood down as chairman and chief executive John Wareing is due to retire in August.
Renold is aiming to grow through acquisition. J&S provides it with the opportunity to break into niche markets, notably the US, where J&S is already strong and where exchange rates are more favourable.
For the year to March 1998 Renold, which employs 2,894, had profits of £11.43m on a turnover of £183.6m. For the same period, J&S, with 18 employees, made profits of £54,000 on a turnover of £22.4m.