- Engineering services group Renew Holdings reported the proposed acquisition of 100% of the issued share capital of QTS, a leading specialist independent rail contractor based in Scotland, for a cash consideration of £80m.

The group also announced a placing to raise gross proceeds of £45m to part-fund the acquisition.


- QTS is an excellent fit with Renew's established and proven acquisition strategy

- QTS has a longstanding relationship with Network Rail, operating under long-term framework positions, and is well positioned for Control Period 6 where Network Rail's spending will focus on renewal and maintenance

- The acquisition will increase Renew's market share, footprint and specialist positioning in the Rail market, a market with high barriers to entry

- Adds complementary services to the existing group's Rail offering

- Builds on Renew's established and proven strategy to grow through selective acquisitions of businesses with a focus on non-discretionary operational expenditure

The acquisition and placing are expected to be materially earnings enhancing; the return on investment is expected to comfortably exceed Renew's cost of capital

- Completion of the Acquisition will occur on 10 May 2018, following completion of the placing

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