Renew Holdings makes £19.8m acquisition

The Aberford-based company said it is making the acquisition of Barnsley-based Amco to grow its specialist engineering business, which will now make up more than 50 per cent of the revenue of the enlarged group.

The move is being funded through a 15m loan provided by HSBC and out of existing cash resources.

Amco is a specialist engineering company operating in the rail, energy, and engineering markets. The company provides an integrated service from feasibility, budget and design through to installation, commissioning and maintenance.

The company's revenue and operating profit for the nine-month period ended September 30, 2010 was 59.8m and 4.2m respectively.

Brian May, chief executive of Renew said: "We are delighted to welcome the staff and management of Amco to the Renew group.

"The acquisition of Amco allows Renew to increase and broaden the scale of its specialist engineering operations, as well as adding to the range of services we can provide to our customers. Amco has a strong and highly experienced management team and I look forward to working with them in the future."

An admission document containing notice of the general meeting at which shareholders will be asked to approve the acquisition is being posted today.