Renew subsidiary acquires high voltage engineering design services for up to £9m

Infrastructure contractor Excalon Holdings, a wholly-owned subsidiary of acquisitive engineering services group Renew Holdings, has acquired a provider of high voltage engineering design services to the energy distribution market for both underground and overhead lines.

The acquisition of Greater Manchester-based Electricity Distribution Engineering Services (EDES) is worth up to £9 million on a cash and debt free basis.

The deal expands the group’s design and delivery capabilities, enabling Salford-based Excalon Holdings and the wider Renew group to offer increasingly specialist electricity engineering services. The addition of EDES will also bolster Excalon’s ability to deliver projects from design through to all stages of delivery.

The deal, which builds on the recent acquisitions of Emerald Power and PWR-X businesses, is forecast to drive additional growth opportunities for the group across the power transmission and distribution market.

The deal involves an initial cash consideration of £6.5 million, funded through Renew’s existing bank facilities, based upon a sustainable EBITDA of £650,000. An additional £2.5 million consideration is also payable, conditional upon specific profit targets being hit and the vendors remaining with the business for an agreed period.

Renew Chief Executive Paul Scott commented: "This acquisition represents a strong strategic fit for the group, bolstering our existing, well-established position in the regulated energy market. I am delighted to welcome the highly regarded EDES team into the Renew family and I look forward to updating the market on the further progress in due course."

Dealmaking in the civil engineering sector has emerged as a prominent trend in UK M&A, amid increasing investment in large-scale infrastructure projects across a number of key sectors

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