LONDON: Renew Holdings (AIM: RNWH), the leading Engineering Services Group supporting the maintenance and renewal of critical UK infrastructure, has acquired Full Circle Group Holding B.V., a specialist provider of repair, maintenance and monitoring services for onshore wind turbines in the UK and Europe for a total cash consideration of €60.0m (£50.5m), funded from the Group’s existing cash resources and banking facilities.
Full Circle was controlled and owned predominantly by AtlasInvest Holding, the Belgian family holding specialised in the energy sector.
Paul Scott, Chief Executive Officer of Renew, commented: “The acquisition of Full Circle represents an exciting opportunity for the Group to enter a high-growth, and fragmented onshore wind services market. Full Circle operates a scalable technology-enabled platform across a diverse customer base with existing long-term contracts and a fast-growing brand in the UK and across Europe. The company’s proven track record in its core markets, and highly experienced management team mean the business is well positioned to service other turbine technologies and geographies both through acquisition and an organic growth strategy.
“With governments across Europe reaffirming their commitments to achieving Net Zero by 2050, the addition of Full Circle’s industry-leading offering will allow us to play a pivotal role in supporting the green energy transition and benefit from the long-term, non-discretionary funding programmes that underpin it. I am delighted to welcome the Full Circle team to the Renew family.”
The Acquisition represents a compelling strategic fit for Renew, entering the high-growth renewable energy services market with a leading position, in line with the Group’s stated strategy of capitalising on the green energy transition.
With governments in the UK and across Europe reaffirming their commitment to achieving net zero carbon emissions by 2050, the opportunity within this sector is significant and growing at pace.
Through the addition of Full Circle’s best-in-class, direct delivery service model, Renew will be able to fully capitalise on this transition, while benefitting from the long-term, non-discretionary maintenance programmes that will continue to underpin it.
Renewable energy is forecast to become the largest component of Europe’s total energy mix by 2050. The onshore wind market is well-established and forecast to grow at 7.7% CAGR over the next six years.
The market for maintenance and renewal of these turbines is highly fragmented and represents a significant opportunity for Full Circle to grow organically and through acquisition. As part of the Group, Full Circle will benefit from Renew’s proven track record of successful M&A and from its best practise experience in the wider engineering services market.