LONDON: Renew Holdings plc, the Engineering Services Group supporting UK infrastructure, announced the acquisition of 100% issued share capital of Agger Limited, the parent company of Carnell Support Services Limited and certain assets of Adger Limited for a cash free/debt free consideration of £38 million.
The Group also announces a placing to raise gross proceeds of £15 million to part-refinance the acquisition.
Carnell is an excellent fit with Renew’s established and proven acquisition strategy. Carnell operates in the regulated highways sector, with long term framework contracts and high barriers to entry. The Acquisition will expand Renew’s total addressable market into an attractive new growth sector.
Paul Scott, CEO of Renew, commented: “At our capital markets day last year we highlighted our ambitions to establish a position in new markets including the strategic highways sector. This acquisition represents the realisation of this strategy and we are very pleased to welcome the management and staff of Carnell to the Renew group. This is a complementary and earnings enhancing acquisition that aligns with our established and proven strategy, strengthening our position in the UK infrastructure market. Carnell has grown to become a leading and well respected brand in the highways sector and we very much look forward to supporting its ambition for continued growth including opportunities via collaboration across our new range of infrastructure services.”
Aidan Clarke, Managing Director of Carnell, commented: “Carnell is delighted to join Renew and we look forward to continued success as part of a larger group. The transaction will provide opportunities to leverage added value for clients and wider business benefits from synergies with the existing successful brands within the Group. It was important to attract an owner with relevant expertise to support our growth ambitions without compromise to service delivery or staff loyalty, and the Renew business model fits perfectly with these aspirations.”