Leeds-based engineering services and infrastructure group Renew Holdings plc said its subsidiary, Excalon Holdings Limited, has acquired Electricity Distribution Engineering Services Ltd (EDES) for up to £9 million on a cash and debt free basis.

EDES is a provider of high voltage engineering design services to the energy distribution market for both underground and overhead lines.

“This acquisition expands Renew’s design and delivery capabilities, enabling Excalon Holdings, and the wider Group, to provide increasingly specialist electricity engineering services,” said Renew.

“It will also unlock further growth opportunities in the power transmission and distribution market where c.£50bn-£60bn of investment is committed across the network over RIIO‑2.

“EDES joins the recently acquired Emerald Power and PWR-X businesses, enabling Excalon Holdings to deliver a full turnkey solution for clients, from design through to all stages of delivery.

“The initial cash consideration of £6.5m has been funded from the Group’s existing banking facilities and is based upon a sustainable EBITDA of £650k.

“Additional cash consideration of up to £2.5m 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 represents a strong strategic fit for the Group, bolstering our existing, well-established position in the regulated energy market.

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