Renew Holdings has acquired highways specialist Carnell for £38m.
Renew, which describes itself as a holding company that grants autonomy to its operating subsidiaries, has businesses in the infrastructure, energy, environmental and specialist building markets.
Carnell provides specialist maintenance and support across four main disciplines: drainage; infrastructure; surveys and technology.
Earlier this month it was announced that Carnell had won a place on two lots (Road Lighting and Electrical, and Civils, Drainage and Geotechnical) on Highways England’s new Asset Delivery Construction Works Framework in the East Region.
Renew CEO Paul Scott said: ‘Last year we highlighted our ambitions to establish a position in new markets including the strategic highways sector. This acquisition represents the realisation of this strategy and we are very pleased to welcome the management and staff of Carnell to the Renew group.
‘Carnell has grown to become a leading and well-respected brand in the highways sector and we very much look forward to supporting its ambition for continued growth including opportunities via collaboration across our new range of infrastructure services.’
Carnell managing director Aidan Clarke said: ‘The transaction will provide opportunities to leverage added value for clients and wider business benefits from synergies with the existing successful brands within the Group.
‘It was important to attract an owner with relevant expertise to support our growth ambitions without compromise to service delivery or staff loyalty, and the Renew business model fits perfectly with these aspirations.’
Renew said it intended to finance the £38m acquisition through a £15m share issue, a separate £15m loan and the expansion of an existing credit facility.
The company said the share issue will allow it to maintain ‘a strong balance sheet with a conservative gearing level, in line with its strategy’.
