Specialist engineering firm acquired for £5m

Renew Holdings, a Leeds-based engineering services group, says its wholly owned subsidiary, Carnell Group Holdings, has completed a £5m acquisition.

Carnell has acquired West Yorkshire-based Route One Holdings (Wakefield) Ltd.

Route One is a multi-disciplinary specialist engineering business operating in the UK Highways sector providing solutions for bridge deck maintenance and protection.

It has a number of long-term frameworks on the National Highways Scheme Delivery Frameworks across England.

The cash consideration will be funded from Renew’s existing cash resources, and there is no deferred or contingent consideration payable.

A spokesman for Renew said: “The acquisition represents an excellent strategic fit for the group.

“Route One will expand Carnell’s offering by adding new capabilities to the group’s highways business, with particular expertise in bridge and structures maintenance and repairs.

“The UK Government’s planned investment in the next Road Investment Strategy (RIS3) from 2025 to 2030 will provide good growth opportunities, where the structures renewal programme has been identified as a key priority.”

RSM’s deal team acted for the vendors, led by Steve Hubbard with support from Tom Sheerin.

Cathy Cook and Rehan Ahsan from LCF Law provided legal sell-side advice, while Andy Francey and Fiona Woodhead from Freeths delivered legal advice to the buyer.

Steve Hubbard, corporate finance partner at RSM UK, said: “The strategic deal brings together two complementary businesses and enhances the capabilities of Renew to support maintenance and renewal of critical UK infrastructure.

“Having established a successful business as a key partner to Highways England, we are confident that Route One will continue to thrive as part of Renew.”

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