Renew Holdings (LSE:RNWH) has agreed to acquire Edwards Diving Services for up to £13m, adding specialist marine and civil engineering capability to its regulated water-services offering.
The acquisition was executed by Envolve Infrastructure, a wholly owned Renew subsidiary, and Renew, the Engineering Services Group supporting maintenance and renewal of UK critical infrastructure, said the initial £10m cash consideration was funded from existing banking facilities with up to £3m additional cash payable if the vendors remain and specified profit targets are met, and the transaction is on a cash‑ and debt‑free basis.
EDS, based in Wales, supplies specialist marine and civil engineering services to the water industry and operates in‑house design and fabrication to deliver complex engineering solutions in challenging environments.
The purchase price is stated to be based on a sustainable EBITDA of £1.3m, implying an enterprise-value-to-EBITDA multiple of about 10x.
Renew said the deal expands Envolve and the wider Group into increasingly specialist water and environmental services, positioning it to benefit from momentum in the AMP8 control period.
“This acquisition expands our services into the exciting specialist water and environmental sectors, bolstering our existing, well‑established position in the regulated water maintenance and renewal market,” Paul Scott, Chief Executive Officer, said.
The group said the acquisition will be immediately earnings enhancing and that it retains a strong balance sheet while it evaluates a pipeline of further acquisitions.
