Renew Holdings PLC on Tuesday announced the acquisition of electricity infrastructure contractor Excalon Holdings Ltd.

The Leeds, England-based engineering service group involved in the maintenance and renewal of critical infrastructure across the UK will acquire the firm for a total consideration of up to £26 million.

Headquartered in Salford, Excalon specialises in the provision of high voltage and extra high voltage infrastructure to the UK electricity sector.

A £22 million initial consideration funded by Renew’s existing cash and banking facilities has been paid thus far, with two additional £2 million payments due in 2025 and 2026.

However, theses follow-up payments are conditional on the achievement of specific profit targets.

Chief Executive Officer Paul Scott said: ‘This acquisition broadens Renew’s exposure to another critical UK infrastructure market, presenting tremendous long-term growth opportunities. It is consistent with our stated strategic objective to expand into new complimentary sectors that have high barriers to entry coupled with resilient attributes.’

The valuation was based on Excalon generating sustainable earning before interest, taxes, depreciation, amortisation of at least £3 million.

When compared to Renew’s existing Engineering Services division, Excalon’s profitability is expected to compare similarly to the 7.2% adjusted operating profit margin reported in the financial year ended September 30.

Renew shares were up 1.2% to 1,086.50 pence each in London on Tuesday morning.

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