Monday, July 15, 2024

Engineering Services Group enters electricity transmission and distribution market with acquisition

Renew, the Leeds-based Engineering Services Group supporting the maintenance and renewal of critical UK infrastructure, has acquired Excalon for a total consideration of up to £26m.

The acquisition allows Renew to expand into the electricity transmission and distribution market. 

Excalon, based in Salford, is an infrastructure contractor specialising in the provision of high voltage and extra high voltage infrastructure to the UK electricity sector. Excalon has a number of long-term frameworks with electricity Distribution Network Operators (DNOs) across the UK.

The UK electricity DNO market is regulated by Ofgem and operates in 5-year control period funding cycles. The RIIO ED2 cycle commenced in April 2023 with the latest determination of funding set at £22.2bn.

Entering this market allows Renew to access both the opportunities in ED2 as well as the upgrade of the grid that is required to support the UK’s zero carbon generation and renewables sector. 

Paul Scott, Chief Executive Officer of Renew, said: “This acquisition broadens Renew’s exposure to another critical UK infrastructure market, presenting tremendous long-term growth opportunities. It is consistent with our stated strategic objective to expand into new complimentary sectors that have high barriers to entry coupled with resilient attributes.

“This is a highly regarded business with a strong track record in this specialist sector, and I am delighted to welcome the management and staff of Excalon to the Renew family.”

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