Engineer Renew makes £7.9m acquisition

The acquisition is Leeds-based Renew’s first since it bought Amco in February 2011 and it includes two freehold properties used by Lewis.

Lewis, which is based near Cardiff, was founded in 1984 and specialises in the construction and maintenance of infrastructure and assets within the water industry. It provides its services through framework agreements and employs around 175 people.

Renew is a £350m turnover multidisciplinary engineering services firm that focuses on supporting the UK’s infrastructure in the energy, environmental and infrastructure markets.

In the environmental sector, Renew has now added Lewis to its existing specialist water business, Seymour.

The acquisition has been funded from the group’s cash resources and overdraft facilities provided by HSBC Bank.

In the year ended July 31, 2012, Lewis reported an operating profit of £1m on turnover of £20.4m. Lewis is expected to record an increase in turnover of approximately 20 per cent in its 2013 financial year and to maintain its operating profit margin percentage.

Roy Harrison OBE, chairman of Renew, said: “Renew’s presence in the environmental market will be significantly strengthened by the acquisition of Lewis.

“This acquisition accords with the group’s clear strategy of growing its engineering services business in sustainable markets, where it can secure strong framework positions with major clients focusing on areas of non-discretionary spend.”

Martin Jenkins and Barry Jackson from Deloitte’s corporate finance team in Leeds said they initially identified Lewis as “a strong potential strategic fit” and introduced the opportunity to Renew.

Mr Jackson, who led the deal from a Deloitte perspective, said: “Over the last two years, Deloitte has been working extensively with Renew to further its acquisition strategy, and we are pleased to see this important acquisition come to fruition.

“Much is made of the challenging economic climate but we are sensing an increased desire for growth and deal-making across the region. We identified the potential for this acquisition as a great fit for Renew’s strategy of growing its engineering expertise in long-term, sustainable markets.”

Legal advice on the acquisition was provided to Renew by Lupton Fawcett Lee & Priestley.