A listed business that supplies labour to major construction and infrastructure projects including HS2 has taken a majority stake in a North West energy infrastructure specialist.
Gloucestershire-based Hercules plc has acquired a 70% shareholding in Warrington-based Lyons Power Services. Hercules says the deal supports its growth strategy by continuing its move into “complementary and high-growth infrastructure sectors” such as energy and power.
The deal is worth £702,800 and will be satisfied half in cash and half in Hercules shares. LPS’s owner-manager David Lyons will retain the remaining 30% of the business and Hercules says he will “remain actively involved in driving LPS’s future growth”.
Announcing the deal, Hercules highlighted the Ƶ’s ongoing investment in energy infrastructure, including National Grid’s proposed £58bn investment in its transmission and distribution networks.
In June, Hercules moved into the power sector by taking over Advantage NRG in its biggest acquisition to date. Advantage supplies skilled operatives to work on overhead lines, and Hercules says it expects demand for that work “to increase substantially”.
LPS works with some of Europe’s largest electrical and energy infrastructure companies, including Siemens and SSE, with services including the installation and commissioning of switchgear and substation systems.
Brusk Korkmaz, CEO of Hercules, said: "We are pleased to welcome Lyons Power Services into the Hercules Group. This acquisition strengthens our presence in the critical power and energy infrastructure sector, providing both diversification and long-term growth opportunities.
“LPS and its expertise in the booming power and energy sector will dovetail nicely with our previous acquisition, Advantage NRG. The partnership structure ensures that we retain the entrepreneurial drive of the LPS management team, while leveraging Hercules’ resources to scale the business further."
David Lyons, managing director of Lyons Power Services, added: "Hercules’ scale, reputation, and client relationships will allow us to accelerate our growth while continuing to deliver the high-quality services our clients expect. We believe our vision for the future is aligned with that of the Hercules management team at what is an exciting time for the infrastructure sector.”
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