REG - Renew Holdings PLC - Acquisition of Enisca

Renew HoldingsAnnouncement

29/11/2022 07:00

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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 £15.6m 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 £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 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, 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 (http://www.renewholdings.com)
 Paul Scott, Chief Executive Officer                         via FTI Consulting

 Sean Wyndham-Quin, Chief Financial Officer                  020 3727 1000

 Numis Securities Limited (Nominated Adviser & Broker)       020 7260 1000

 Stuart Skinner/ Kevin Cruickshank / William Wickham

 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 / Rafaella de Freitas         Renew@fticonsulting.com (mailto:Renew@fticonsulting.com)

 

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 (http://www.renewholdings.com)

Certain information contained in this announcement would have constituted
inside information (as defined by Article 7 of Regulation (EU) No 596/2014)
prior to its release as part of this announcement.

 

 

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