LONDON, UK: Renew Holdings (AIM: RNWH), the leading Engineering Services Group supporting the maintenance and renewal of critical UK infrastructure, has acquired the entire issued share capital of Enisca Group from its founders for a total consideration of £15.6m payable in cash.

Enisca Group 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 £51bn 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 Group is expected to be immediately earnings enhancing with forecasted sales of £30m and operating profit of £2.1m (based on Renew management’s forecast for the 12 months for September 2023).

The consideration of £15.6m 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 Holdings, 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 Group, commented: “We very much look forward to the opportunity to join with Renew Holdings 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.”

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.