Augsburg / Mariemont (OH / U.S.), December 24, 2024 – RENK Group AG, a leading supplier of military and civilian propulsion solutions, has entered into a definitive agreement to acquire the U.S. gear manufacturer Cincinnati Gearing Systems Inc. ("CGS Inc."), based in Mariemont / Cincinnati, Ohio (U.S.). Founded in, 1907, CGS Inc. is a recognized leader in the design and manufacture of precision gears and power transmission equipment, components and spare parts for military and industrial applications.
The acquisition of CGS Inc. will fit seamlessly into the RENK Group's global expansion strategy with a focus on the US military business.
"I am very pleased that we have achieved this decisive step in localizing our Navy activities in this important market“, said Susanne Wiegand, CEO of RENK Group AG.
"With the acquisition of Cincinnati Gearing Systems Inc., we are further expanding our local presence in the North American market and strengthening our role as a manufacturer of mission-critical propulsion solutions in the military sector," said Dr. Alexander Sagel, COO of RENK Group AG. "At the same time, we are strengthening the basis for further profitable growth in the naval sector and are reinforcing our position as a trusted partner for our allies."
With the strategic acquisition of CGS Inc. and the associated integration of more than 100 new colleagues, the RENK Group will grow to nearly 4,000 employees at 22 locations worldwide.
In addition to the headquarters in Mariemont / Cincinnati (OH), CGS Inc. has a second location in Milford / Cincinnati (OH). In total, the production area extends to approximately 15,000 square meters.
"We are very pleased to become part of the global RENK family. Being part of the group will strengthen our role as a supplier to the US Navy. CGS Inc.'s many years of experience and operational expertise in the North American market, coupled with the technology of the RENK Group, will enable our company to continue to grow profitably," said Patrick Potter, President of Cinncinnati Gearing System Inc.
The transaction includes all assets of CGS Inc., including the facilities in Mariemont and Milford, Ohio and is subject to customary closing conditions including regulatory approvals. The transaction is expected to close in the 1st Quarter of 2025.
The parties have agreed not to disclose the purchase price.
About the RENK Group AG
Headquartered in Augsburg, Germany, RENK Group AG is a globally leading manufacturer of mission-critical propulsion solutions across diverse military and civil end markets. Our product portfolio includes gear units, transmissions, power-packs, hybrid propulsion systems, suspension systems, slide bearings, couplings & clutches and test systems. With this broad product portfolio RENK Group AG serves, in particular, customers in industries for military vehicles, naval, civil marine, and industrial applications focused on energy. In the fiscal year 2023, RENK Group AG generated revenue of EUR 926 million.
About Cincinnati Gearing Systems Inc.
Cincinnati Gearing Systems is a specialist in the design and manufacture of precision gear units, power transmission components and integrated drive solutions for commercial and military vessels and demanding industrial applications. The company was founded in 1907 in Cincinnati, Ohio, and is a co-founder of the American Gear Manufacturers Association.
Disclaimer
This Press Release contains forward-looking statements that are based on plans, expectations, estimates and projections of the management of RENK Group as at the date of this Press Release. These plans, expectations, estimates and projections depend on a variety of assumptions and are subject to unforeseeable events, uncertainties, known and unknown risks as well as other factors that may cause actual results or the actual financial situation, development or performance to differ from those expressed or implied in the forward-looking statements. RENK Group does not assume any obligation to update the forward-looking statements or make adjustments to them to reflect events or developments occurring after the date of this Press Release unless obliged by statutory law.
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