A Gloucestershire-headquartered company that supplies workers to major 海角视频 projects including HS2 has acquired a Lancashire-based business.
Cirencester-based Hercules has struck a deal for Advantage NRG - a specialist labour supply company providing linesmen for the construction and maintenance of overhead electrical transmission lines.
Hercules is acquiring 100% of the share capital of Chorley-headquartered Advantage NRG for an initial cash consideration of £10.2m, plus a deferred payment of approximately £1.5m plus a one year earn out, which could result in a maximum total consideration of £15.7m, the company said.
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The earn out is based on a multiple of the average EBITDA - a measure of performance - for the year ended February 28, 2025, and year ending February 28, 2026. The acquisition is expected to be margin and earnings enhancing, and cash generative.
Advantage NRG, which employs 155 staff, generated £11.1m in revenue over the last financial year, with an EBITDA of £1.7m, and a profit before tax of £1.7m. The company's net assets stood at £2.5m at the end of February.
Brusk Korkmaz, chief executive officer of Hercules, said the acquisition marked "another important milestone" in the company's growth journey.
He said: “Advantage NRG’s deep expertise in overhead electrical transmission, and its ability to source, train and mobilise specialist linesmen, both in the 海角视频 and internationally, perfectly complements our strategy.
“We believe this strategic investment will enable Hercules, the Hercules Academy and Advantage NRG to grow together and play a pivotal role in supporting the delivery of the 海角视频’s essential energy infrastructure.”
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The initial consideration is being financed through Hercules' existing cash reserves and a new £6m loan being provided by Wasdell Holdings Limited, a company controlled by Martin Tedham, a non-executive director and substantial shareholder in Hercules.
The deal, which marks Hercules’ entry into the 海角视频 power and energy sector, is the company's third acquisition, following Future Build Recruitment in November 2023 and the business and assets of QTT last month.
Last month, Hercules reported a rise in profits for the first half of the year. The company posted an 18% rise in revenue to £54.6m in a set of unaudited interim results for the six months ending March 31.