Engineering services company, Renew, has acquired utilities infrastructure specialist, Excalon Holdings Limited, for £26 million.
The deal allows Renew to expand into the electricity transmission and distribution sector, a move consistent with the group’s end-market strategy.
Salford-headquartered contractor Excalon specialises in the provision of high-voltage and extra-high-voltage infrastructure to the UK electricity sector and the business has several long-term frameworks with Distribution Network Operators (DNOs).
The valuation of the company was based on Excalon generating a sustainable EBITDA of at least £3 million per annum, and the acquisition itself is conditional upon specific profit targets being achieved.
It follows the acquisition of specialist engineering business, Route One Holdings (Wakefield) Limited, in West Yorkshire, for £5 million.
Click here to read more about Renew’s activities
Renew CEO, Paul Scott, said: “This acquisition broadens Renew’s exposure to another critical UK infrastructure market, presenting tremendous long-term growth opportunities.
“It is consistent with our stated strategic objective to expand into new complementary sectors that have high barriers to entry coupled with resilient attributes.
“This is a highly regarded business with a strong track record in this specialist sector, and I am delighted to welcome the management and staff of Excalon to the Renew family.”
Was this interesting? Try Murphy to expand after another year of growth
If you have a tip or story idea that fits with our publication, please contact the news editor rory@wavenews.co.uk
Get industry news in 5 minutes!
A daily email that makes industry news enjoyable. It’s completely free.