Infrastructure and engineering giant Renew has bought a rail electrification company through one of its subsidiaries.
The Leeds-based firm has acquired the entire issued share capital of Glasgow’s Rail Electrification Limited (REL) through its QTS Group division.
REL provides services and plant associated for overhead line electrification, with Renew saying the deal would complement its existing rail offering and capitalise on planned levels of investment by Network Rail.
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The £5.3m deal is made up of an initial £3m payment in cash, with deferred payments of up to £2.3m payable between now and September 2024 depending on hitting targets.
Renew said the deal had been funded from existing cash resources.
Paul Scott, chief executive of Renew, said: “The rail network has a crucial part to play in supporting the 海角视频’s commitment to Net Zero 2050 and this acquisition will help enable Renew to play a bigger part in Britain’s green economic recovery.
“REL is a highly regarded business with a strong track record and will enable us to broaden our service offering within our rail business. Our existing multidisciplinary rail capability, complemented by the electrification expertise of REL, leaves Renew ideally positioned to play its part in delivering a decarbonised railway.
“Rail electrification offers attractive long term structural growth opportunities underpinned by highly visible committed regulatory spend in a sector that we know extremely well. I am delighted to welcome the management and staff of REL to the Renew family.”
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The acquisition will see REL operate as a wholly owned subsidiary of QTS, which Renew acquired in 2018.
All of the REL team, including the management trio of Scott Kernachan, Mark Potts and Kenny Barr, will join QTS at its Scottish HQ in Drumclog, South Lanarkshire.
Alan McLeish, managing director of QTS Group, said: “QTS has grown rapidly over the last decade and, in order for us to continue that growth, we knew we needed to add to our already impressive portfolio of capabilities. The next natural step was electrification, which allows us to give a fully rounded service to our clients.
“By adding REL to the QTS Group, we are joining forces with a leading business in this area, which will be a great benefit to the work that we deliver for our clients.
“I am looking forward to integrating the REL team into QTS and to welcoming Scott onto the board of directors.”
Mr Kernachan said: “Through this deal, we are opening up the future of REL to even greater possibilities. As QTS already has its Principal Contractor license, and a number of frameworks in place, it really transforms the opportunities available for us as experts in electrification.
“It also opens up more prospects for our employees, which was an important factor in the sale. As a small business, the opportunity for progression was limited, however this acquisition will allow the ability for individual growth and career development.
“I’ve always admired the way QTS operates and its ethos is very similar to what we have at REL, so I am confident it will be a great fit for us and for our clients.”