Renew Holdings (LSE:RNWH) has strengthened its presence in the regulated energy infrastructure market through the acquisition of Electricity Distribution Engineering Services Ltd (EDES) for up to £9 million. The initial £6.5 million consideration will be funded through the group’s existing banking facilities.
EDES specialises in high-voltage engineering design services for both underground and overhead electricity distribution networks. The business will become part of Renew’s Excalon Holdings division, joining recently acquired operations including Emerald Power and PWR-X.
The acquisition expands Excalon’s capabilities across the power infrastructure sector, enabling the division to deliver fully integrated solutions ranging from initial system design through to complete project execution. Management said the transaction is expected to be immediately earnings enhancing.
The deal is based on a sustainable EBITDA contribution of approximately £650,000, with additional earn-out payments linked to future profit performance. Renew believes the acquisition further positions the group to benefit from the substantial long-term investment planned across the UK’s electricity transmission and distribution networks under the RIIO-2 regulatory framework, which is expected to total between £50 billion and £60 billion.
Renew’s broader investment outlook remains supported by strong financial performance, including consistent revenue growth and disciplined cash management. While technical indicators suggest some short-term market weakness, there remains potential for a recovery. Valuation metrics appear broadly reasonable, supported by a moderate dividend yield. The absence of earnings call commentary and major corporate event updates had little impact on the overall assessment.
More about Renew Holdings plc
Renew Holdings plc is a UK engineering services group focused on maintaining and upgrading critical national infrastructure assets. Through a portfolio of independently branded subsidiaries, the company operates across regulated sectors including rail, infrastructure, energy, nuclear, wind power and environmental services, benefiting from long-term, non-discretionary investment programmes.
Leave a Reply