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(Sharecast News) - Engineering services group Renew said on Monday that it had expanded into the "fast-growing" overhead line maintenance and repair market with its acquisition of Cheshire-based firm Emerald Power.
Renew said Excalon, its wholly owned subsidiary, would acquire Emerald Power for a total consideration of up to £12.3m, with an initial cash consideration of £7.8m being funded from its existing banking facilities. Additional consideration of up to £4.5m was conditional upon the vendors remaining with the business and specific profit targets being achieved.
The AIM-listed firm said the acquisition will be immediately earnings-enhancing.
Renew chief executive Paul Scott said: "This acquisition represents a strong strategic fit for the Group, enabling our expansion into the rapidly growing overhead line maintenance and repair market.
"It will bolster our existing well-established position in the regulated electricity distribution sector, with Excalon, and we are now increasingly well placed to capitalise on the significant levels of investment being directed into the market in support of the government's commitment to decarbonising the UK's electricity grid before 2030."
Reporting by Iain Gilbert at Sharecast.com
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