Renew Holdings plc Acquires Giffen Holdings Limited
Renew, the Engineering Services Group supporting UK infrastructure, is pleased to announce the acquisition of Giffen Holdings Limited. Giffen, which is based in St Albans, specialises in mechanical, electrical and power services within the railway environment, working for both Network Rail and London Underground as well as a select number of Train Operating Companies. Giffen has four frameworks with Network Rail and six frameworks with London Underground. Giffen is a direct delivery organisation, employing 123 staff and skilled operatives. Following the acquisition, Giffen, whose entire management team is remaining with the company, will report into Amco Rail, Renew's rail infrastructure business.
For the year ended 30 September 2016, Giffen is expected to record revenue of approximately £22m and an adjusted profit before taxation of £0.7m. The acquisition cost is £5m for the whole of the issued share capital with a further £2m being required to redeem loans from Giffen's current private equity owners. The whole consideration will be paid from Renew's existing cash resources. At completion, Giffen had a cash balance of less than £75k.
By acquiring the complementary skills of Giffen, Amco Rail will be able to offer an expanded range of services across the rail network as well as creating opportunities for the Group to provide services to London Underground.
About Renew Holdings plc
Engineering Services, which accounts for 85% of Group revenue and 90% of operating profit, focuses on the key markets of Energy (including Nuclear), Environmental and Infrastructure, which are largely governed by regulation and benefit from non-discretionary spend with long-term visibility of committed funding.
Specialist Building focuses on the High Quality Residential market in London and the Home Counties.
For more information please visit the Renew Holdings plc website: www.renewholdings.com