Leeds-based engineering services and infrastructure group Renew Holdings plc announced that its wholly owned subsidiary Envolve Infrastructure Limited has acquired Edwards Diving Services Limited (EDS) for a total consideration of up to £13 million on a cash and debt free basis.

“EDS, based in Wales, is a provider of specialist marine and civil engineering services to the water industry, utilising in-house design and fabrication capability to deliver complex engineering solutions within challenging environments,” said Renew.

“This acquisition represents a strong strategic fit as well as expanding the group’s capabilities by taking Envolve, and the wider group, into increasingly specialist water services, providing further growth opportunities as momentum builds within the AMP8 control period.

“Initial cash consideration of £10m has been funded from the group’s existing banking facilities and is based upon a sustainable EBITDA of £1.3m. Additional cash consideration of up to £3m is conditional upon the vendors remaining with the business for an agreed period and specific profit targets being achieved.

“The acquisition will be immediately earnings enhancing. The group retains a strong balance sheet and continues to evaluate a pipeline of further acquisitions, in line with its strategy.”

Renew CEO Paul Scott said: “This acquisition expands our services into the exciting specialist water and environmental sectors, bolstering our existing, well-established position in the regulated water maintenance and renewal market.

“As we move into the second year of the AMP8 control period, we are increasingly well placed to capitalise on the significant level of investment, underpinned by a wider environmental protection focus on waterways and marine investment.

“I am delighted to welcome the highly regarded EDS team into the Renew family and I look forward to updating the market on the further progress in due course.”