Fri, 26 Mar 2021 | BUSINESS SALE
Water engineering services company J Browne Group has been acquired by Renew Holdings for £29.5 million, a more than 5.3x multiple of its £5.5 million pre-tax profits. The acquisition was funded through a combination of cash and Renew’s existing revolving credit facility with Natwest and HSBC.
Enfield-based J Browne operates throughout the South of England, working for the likes of Southern Water, Thames Water, South East Water and Affinity Water. It provides both infrastructure and non-infrastructure services and also provides utility connections and infrastructure for the London and Home Counties developer market.
Following the water sector’s transition to a five-year price control period, J Browne has forecast that its turnover will fall to £63.3 million for the year ending March 31 2021. The company’s £5.5 million pre-tax profits for the year ending March 31 2020 were generated on revenue of £79.2 million.
Renew says that the acquisition will be an excellent strategic fit that will immediately improve group earnings. It adds that J Browne will deliver material scale to the group’s water business and bring new water clients in.
Renew Chief Executive Paul Scott said: "This acquisition broadens Renew's exposure to the UK water market and is consistent with our strategic objectives. This market offers attractive long-term growth opportunities underpinned by committed regulatory spend and is a sector we understand well from our established relationships in other water regions.”
Jeremy Browne, Chairman of J Browne, commented: “It was critical for us to have an owner who shares the values that have contributed to our success and one which has demonstrated the necessary expertise to support our growth ambitions.”
"The Renew business model and strategy fits perfectly with these aspirations and I believe the J Browne brand will continue to flourish alongside the many other highly respected Renew subsidiary businesses."
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