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Tue June 18 2024

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Renew taps into the grid with £26m acquisition

11 Jun Renew has acquired Excalon Holdings Limited to tap into the electricity transmission and distribution market.

Excalon, founded in 2002, supplies infrastructure services to the electricity sector
Excalon, founded in 2002, supplies infrastructure services to the electricity sector

Renew has paid an initial £22m for Excalon, with an additional £2m payable in 2025 along with a further £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 £32m (down from £50m the previous year) and made a pre-tax profit of £1.6m.

Renew chief executive Paul Scott said: “This 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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