Second acquisition for engineering group

Engineering group, Renew Holdings has continued its focus on the rail sector, which underpinned the firms record breaking performance last year, with its wholly owned subsidiary QTS Group acquiring Rail Electrification Ltd (REL) for a total cash sondieration of up to £5.3m.

REL is based in Glasgow and is a leading provider of high-quality services and road rail plant associated with the installation and commissioning of overhead line electrification. The deal brings complementary capabilities to the Leeds-based firms rail offering and will support its growth in the sector and enable it to “play a bigger part in Britain’s green economic recovery”, with the rail networks a crucial component of the country’s net zero strategy.

The initial consideration is £3m and is funded by Renew’s existing cash resources. There is a further deferred cash payment of up to £2.3m payable between now and September 2024 and conditional upong the achievement of certain targets.

Paul Scott

Paul Scott, chief executive of Renew, said: “The rail network has a crucial part to play in supporting the UK’s commitment to Net Zero 2050 and this acquisition will help enable Renew to play a bigger part in Britain’s green economic recovery.

“REL is a highly regarded business with a strong track record and will enable us to broaden our service offering within our Rail business. Our existing multidisciplinary rail capability, complemented by the electrification expertise of REL, leaves Renew ideally positioned to play its part in delivering a decarbonised railway. Rail electrification offers attractive long term structural growth opportunities underpinned by highly visible committed regulatory spend in a sector that we know extremely well. I am delighted to welcome the management and staff of REL to the Renew family.”

This deal follows the Renew acquiring J Browne Group for £30m earlier this year as it looked to grow the scale of its water business.

Click here to sign up to receive our new South West business news...
Close