Leeds-based engineering services group Renew has acquired Salford’s Excalon for £26 million, assuming profit targets are hit, helping Renew to expand into the electricity transmission and distribution market. 

Excalon is a leading UK contractor specialising in high voltage and extra high voltage infrastructure for the UK electricity sector, with a number of long-term frameworks with electricity distribution network operators across the country. 

Renew said the purchase would help it get access to the current cycle of electricity infrastructure spending and participate in the upgrading of the electricity grid that is required to support the UK’s zero carbon generation and renewables sector.

An initial payment of £22 million will be augmented by an additional payment of up to £2 million in 2025 and a further £2 million in 2026, conditional upon the vendors remaining with the businesses and specific profit targets being achieved, Renew said. 

Paul Scott, Chief Executive Officer of Renew, said: “This acquisition broadens Renew’s exposure to another critical UK infrastructure market, presenting tremendous long-term growth opportunities. It is consistent with our stated strategic objective to expand into new complementary sectors that have high barriers to entry coupled with resilient attributes. This is a highly regarded business with a strong track record in this specialist sector, and I am delighted to welcome the management and staff of Excalon to the Renew family.”