Renew Holdings PLC Acquisition of Rail Electrification Limited (REL) (2992A)
June 01 2021 - 2:00AM
UK Regulatory
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RNS Number : 2992A
Renew Holdings PLC
01 June 2021
1 June 2021
Renew Holdings plc
("Renew" or the "Group")
Acquisition of REL
Transaction expands Renew's Rail electrification capabilities as
journey to Net Zero accelerates
Renew (AIM: RNWH), the leading Engineering Services Group
supporting UK infrastructure, announces that its wholly owned
subsidiary, QTS Group Limited ("QTS"), has acquired the entire
issued share capital of Rail Electrification Limited ("REL"), ("the
Acquisition") for a total cash consideration of up to GBP5.3m.
Based in Scotland, REL is a leading provider of high-quality
services and Road Rail Plant associated with the installation and
commissioning of Overhead Line Electrification (OLE) in both the
light and heavy rail infrastructure sectors across the UK.
REL brings highly complementary capabilities to Renew's existing
rail offering and will enable the Group to further capitalise on
the planned increased level of investment by Network Rail into rail
electrification. It further strengthens and expands the Group's
existing multidisciplinary maintenance and renewals engineering
services it provides across the rail network.
As part of the UK Government's commitment to delivering a carbon
neutral rail network by 2040 for England and Wales and by 2035 for
Scotland, it is estimated that there will be around 15,000 single
track kilometres of new electrification carried out across Network
Rail's controlled infrastructure over this period. The recently
released Williams Rail Review states that electrification is likely
to be the main way of decarbonising the rail network.
The initial consideration for the Acquisition was GBP3.0m in
cash, with further deferred cash payments of up to GBP2.3m payable
between now and September 2024, conditional upon the achievement of
certain targets. The consideration has been funded from Renew's
existing cash resources.
Paul Scott, Chief Executive of Renew, commented:
"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."
For further information, please contact:
Renew Holdings plc www.renewholdings.com
Paul Scott, Chief Executive Officer via FTI Consulting
Sean Wyndham-Quin, Chief Financial 020 3727 1000
Officer
Numis Securities Limited (Nominated
Adviser & Broker)
Stuart Skinner/ Kevin Cruickshank 020 7260 1000
FTI Consulting (Financial PR) 020 3727 1000
Alex Beagley/ James Styles Renew@fticonsulting.com
About Renew Holdings plc
Renew Holdings plc is a leading UK Engineering Services
business, performing a critical role in keeping the nation's
infrastructure functioning efficiently and safely. The Group
operates through independently branded subsidiaries across its
chosen markets, delivering non-discretionary maintenance and
renewal tasks through its highly skilled, directly employed
workforce.
Renew's activities are focused into two business streams:
Engineering Services, which accounts for over 90 per cent of the
Group's adjusted operating profit, focuses on the key markets of
Rail, Infrastructure, Energy (including Nuclear) and Environmental
which are largely governed by regulation and benefit from
non-discretionary spend with long-term visibility of committed
funding.
Specialist Building focuses on the High Quality Residential and
Science markets in London and the Home Counties.
For more information please visit the Renew Holdings plc
website: www.renewholdings.com
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