Renew has paid an initial 拢22m for Excalon, with an additional 拢2m payable in 2025 along with a further 拢2m in 2026, conditional upon founders Des Donnelly and Kevin O'Donnell remaining with the businesses and profit targets being achieved.
Renew said that Excalon would help it expand into the electricity transmission and distribution market, in line with its strategy of targeting markets where maintenance and renewals programmes benefit from long-term, non-discretionary funding programmes.
Excalon, based in Salford, specialises in the provision of high voltage and extra high voltage infrastructure to the UK electricity sector. It has several long-term frameworks with electricity distribution network operators across the UK.
In the year to 30th April 2023 it turned over 拢32m (down from 拢50m the previous year) and made a pre-tax profit of 拢1.6m.
Renew chief executive Paul Scott said: 鈥淭his 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. This is a highly regarded business with a strong track record in this specialist sector, and I am delighted to welcome the management and staff of Excalon to the Renew family."
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