Leeds-based Renew Holdings announces acquisition of Route One

Route One has a number of long-term frameworks on the National Highways Scheme Delivery Frameworks across England.

In a statement, Renew said: “The cash consideration will be funded from the group's existing cash resources, and there is no deferred or contingent consideration payable.

“The acquisition represents an excellent strategic fit for the group. Route One will expand Carnell's offering by adding new capabilities to the group's highways business, with particular expertise in bridge and structures maintenance and repairs.

"The UK Government's planned investment in the next Road Investment Strategy (RIS3) from 2025 to 2030 will provide good growth opportunities, where the structures renewal programme has been identified as a key priority.”

A deals team from RSM, the audit, tax and consulting firm, acted for the vendors, led by Steve Hubbard with support from Tom Sheerin.

Cathy Cook and Rehan Ahsan from LCF Law provided legal advice to the seller; while Andy Francey and Fiona Woodhead from law firm Freeths delivered advice to the buyer.

Commenting on the acquisition Steve Hubbard, corporate finance partner at RSM UK, said: “The strategic deal brings together two complementary businesses and enhances the capabilities of Renew to support the maintenance and renewal of critical UK infrastructure.

Mr Hubbard added: “Having established a successful business as a key partner to Highways England, we are confident that Route One will continue to thrive as part of Renew.”

Renew's activities are focused into two business streams: engineering services, which accounts for more than 95 per cent of the group's adjusted operating profit, and specialist building which focuses on the residential and science markets in London and the Home Counties.