LONDON: Renew Holdings (AIM: RNWH), the leading Engineering Services Group supporting the maintenance and renewal of critical UK infrastructure, announced that its wholly owned subsidiary, Excalon Holdings Limited (“Excalon”), has acquired Emerald Power Ltd (“Emerald”) for a total consideration of up to £12.3m.
Emerald Power, based in Cheshire, is a specialist in overhead lines, focused on the maintenance and upgrade of electricity networks for Distribution Network Operators (DNOs) in the North West.
This acquisition represents a strong strategic fit for the Group, further expanding the Group’s capabilities by taking Excalon into the fast-growing overhead line maintenance and repair market across voltages ranging from 11kV to 132kV. Emerald’s expertise and established relationships will strengthen the Group’s position in the regulated electricity distribution sector.
The UK electricity sector is benefitting from significant investment across both distribution and transmission infrastructure to support the government’s target of decarbonising the electricity grid by 2030. As a result, the RIIO-ED2 regulatory funding cycle, which commenced in April 2023, has allocated £22.2 billion to the distribution grid through to 2028.
The initial cash consideration of £7.8m has been funded from the Group’s existing banking facilities and is based upon Emerald having delivered an adjusted EBITDA of £1.9m in the year to 31 July 2025. Additional consideration of up to £4.5m is conditional upon the vendors remaining with the business and specific profit targets being achieved.
The Acquisition will be immediately earnings enhancing. The Group retains its strong balance sheet and continues to evaluate a pipeline of further acquisitions.
Paul Scott, Chief Executive Officer of Renew, commented: “This acquisition represents a strong strategic fit for the Group, enabling our expansion into the rapidly growing overhead line maintenance and repair market. It will bolster our existing well-established position in the regulated electricity distribution sector, with Excalon, and we are now increasingly well placed to capitalise on the significant levels of investment being directed into the market in support of the government’s commitment to decarbonising the UK’s electricity grid before 2030.
“I am delighted to welcome the highly regarded Emerald Power team into the Renew family and I look forward to updating the market on the further progress made in this exciting sector in due course.”