Augsburg-based drive specialist Renk is expanding into the USA and acquiring the company Cincinnati Gearing Systems.
Renk – with a focus on the military and marine sectors, among others – has signed a corresponding agreement with the US gearbox manufacturer CGS, based in Mariemont/Cincinnati in the state of Ohio.
Subject to certain regulatory approvals, the transaction is expected to be completed in the first quarter of 2025, according to a joint statement. The parties have agreed not to disclose the purchase price.
CGS was founded in 1907 and is reportedly “a market leader in the development and manufacture of precision gears and drive technology, as well as components and spare parts for the military and industrial sectors.” The acquisition should “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 taken this decisive step towards localising our marine activities in this important market,” said outgoing Renk CEO Susanne Wiegand, who recently announced her surprising retirement.
Renk is expanding its presence in North America
“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 drive solutions in the military sector, said COO Alexander Sagel. “At the same time, we are strengthening the foundations for further profitable growth in the marine segment and underlining our position as a trusted partner for our allies.”
Through the strategic acquisition and the associated integration of over 100 new colleagues, the Renk Group is growing to almost 4,000 employees at 22 locations worldwide. In addition to the headquarters in Mariemont / Cincinnati (OH), CGS also has a second location in Milford / Cincinnati (OH). This brings the total production area to approx. 15,000 m².
“We are very pleased to become part of the global Renk family. Joining the Group will strengthen our role as a supplier to the US Navy. The long-standing know-how and operational expertise of CGS Inc. in the North American market coupled with the technology from the Renk Group will allow our company to continue to grow profitably, says Patrick Potter, President Cincinnati Gearing System Inc.
The transaction includes all assets of CGS Inc. including the Mariemont and Milford locations in Ohio.
