Leeds-based engineering group Renew Holdings acquires cumbrian nuclear manufacturing firm

Renew said in line with its strategy, the acquisition would enhance its nuclear services offering and strengthen its position in the growing nuclear decommissioning and new build markets.

Paul Scott, chief executive officer of Renew, said: "This acquisition will allow Renew to continue to support its existing clients and take advantage of increasing demand across the decommissioning and new nuclear build programmes.

“The added manufacturing capacity will allow Renew to better support its existing clients, as well as strengthening its broader market position.”

Based in Cumbria, TIS is a leading nuclear manufacturing and fabrication specialist.

As part of a partnership with fellow Workington-based SME, McMenon Engineering, the firm was last year appointed to deliver fabricated and manufactured equipment packages for 2 major projects at the multi-function nuclear site Sellafield.

The company has also worked on the £5 billion Tideway project, which aims to relieve pressure on the existing 150-year-old sewers in London.

The firm developed a 46 tonne pipe and 28 tonne vortex system to be one of the centrepieces of the Tideway project.

In a trading update issued earlier this month, Renew announced that it had achieved continued trading momentum over the last financial year, with results expected to be ahead of market expectations

The group said that “robust” demand across its end markets combined with the company’s ability to “successfully navigate” ongoing inflation pressures had led the board to expect that revenue and operating profit will be marginally ahead of the market consensus.

The statement added: “The company's balance sheet continues to be strong with net cash, at September 30 2023, anticipated to be ahead of market expectations.

“The board looks to the year ahead with confidence, with the group well positioned to continue to benefit from the UK's committed infrastructure spend.”

Renew has acquired the entire issued share capital of T.I.S. Cumbria Ltd, for a total cash consideration of £4.7 million. The consideration of £4.7m will be funded from the Group’s existing cash resources, with no deferred consideration payable.

Mr Scott added: “TIS represents an excellent strategic fit with our existing multidisciplinary nuclear capability, which offers attractive long term structural growth opportunities underpinned by highly visible committed regulatory spend in a sector that we know extremely well. I am delighted to welcome the management and staff of TIS to the Renew family."

Renew is an engineering Services business which operates through independently branded subsidiaries.

Its 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.