Renew, the Leeds-based engineering services group, has today announced the acquisition of Giffen Holdings, which will help Renew to offer services across the rail network.
Giffen, which is based in St Albans, specialises in mechanical, electrical and power services within the railway sector, working for both Network Rail and London Underground, as well as a number of train operating companies.
Giffen has four frameworks with Network Rail and six frameworks with London Underground.
In a statement, Renew said: “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 September 30 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.”
The statement added: “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.”
Debbie Jackson and Oliver Duke from Walker Morris Corporate Group advised Renew in connection with this deal, along with Usman Malik from Grant Thornton.