Renew Holdings PLC Acquisition of Enisca (8504H)
November 29 2022 - 2:00AM
UK Regulatory
TIDMRNWH
RNS Number : 8504H
Renew Holdings PLC
29 November 2022
29 November 2022
Renew Holdings plc
("Renew" or the "Group")
Acquisition of Enisca
Acquisition expands Renew's water capabilities and will help
maximise future framework opportunities
Renew (AIM: RNWH), the leading Engineering Services Group
supporting the maintenance and renewal of critical UK
infrastructure, is pleased to announce that it has acquired the
entire issued share capital of Enisca Group ("Enisca") from its
founders for a total consideration of GBP15.6m payable in cash
("the Acquisition").
Enisca is a multi-disciplinary engineering business operating in
the water and environmental sector with headquarters in Cookstown,
Northern Ireland but with a base on the UK mainland. Enisca has
long term Mechanical, Electrical, Instrumentation, Controls and
Automation (MEICA) frameworks with Southern Water, South East
Water, Affinity Water, Yorkshire Water, Irish Water, Northern
Ireland Water, Anglian Water and Northumbrian Water.
The Acquisition represents an excellent strategic fit, adding
new capabilities and clients to Renew's water business which
continues to benefit from the UK Government's commitment to spend
GBP51bn over AMP7 into 2025. Further, Enisca will form a key part
of the Group's strategy to maximise the opportunities presented by
AMP8 ahead of the anticipated start of procurement in 2024.
Enisca is expected to be immediately earnings enhancing with
forecasted sales of GBP30m and operating profit of GBP2.1m (based
on Renew management's forecast for the 12 months for September
2023).
The consideration of GBP15.6m on a cash-free/debt-free basis
will be funded by a combination of cash and the Group's existing
revolving credit facility. There is no deferred consideration
payable. The entire executive management team of Enisca will remain
with the business post Acquisition.
Paul Scott, Chief Executive of Renew, commented:
"This Acquisition broadens Renew's exposure to the UK water
market and is consistent with our stated strategic objectives.
Enisca is a highly regarded business with a strong track record and
is well known to Renew having been a joint venture partner of
Browne since the start of AMP6 in 2015. Our existing
multidisciplinary water capability, complemented by the inclusion
of Enisca will significantly enhance Renew's proposition ahead of
AMP8 procurement in 2024. I am delighted to welcome the management
and staff of Enisca to the Renew family."
Tom Ruddy, Chairman of Enisca, commented:
"We very much look forward to the opportunity to join with Renew
for this attractive new chapter. Renew will be an excellent
long-term strategic fit for Enisca giving us access to its
interconnected Group subsidiary businesses, clients and frameworks.
I would like to thank my fellow directors and shareholders and all
the employees of the Enisca Group companies for building the
company to where it is today, a strong and vibrant business in the
UK and Ireland Water and Environmental markets."
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
/ William Wickham 020 7260 1000
Peel Hunt LLP (Joint Broker)
Mike Burke / Harry Nicholas /
Charles Batten 020 7418 8900
FTI Consulting (Financial PR) 020 3727 1000
Alex Beagley / Sam Macpherson Renew@fticonsulting.com
/ Rafaella de Freitas
About Renew Holdings plc
Renew Holdings Group 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.
Specialist Engineering, which accounts for over 95 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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END
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