Member Article

West Yorkshire engineering services group acquires £33 million Oldham telecoms firm

West Yorkshire-based Renew Holdings plc, the AIM listed engineering services group, has acquired Clarke Telecom Ltd, a £33 million business focused in the wireless telecoms infrastructure market.

The acquisition will enable Renew to strengthen its position in supporting critical UK infrastructure.

The acquisition has been funded from the Group’s cash resources and a finance package of £12 million provided by HSBC’s Yorkshire Corporate Banking team.

The deal was managed on behalf of HSBC by senior corporate banking manager Neil Abbott, alongside Addleshaw Goddard as legal advisors.

Renew was advised by Walker Morris, led by Debbie Jackson, and Spark Advisory Partners, led by Sean Wyndham-Quin.

Deloitte in Manchester led by Jodi Birkett and Paul Leather provided vendor due diligence on the transaction.

Clarke operates nationally, and was founded in 2000. It provides its services through framework agreements and employs approximately 200 personnel.

The wireless telecoms infrastructure market is currently experiencing growth as demand for mobile internet access and communications is outstripping the capability and capacity of the existing mobile network infrastructure alongside the introduction of 4G services.

Roy Harrison OBE, chairman of Renew, commented: “This earnings enhancing acquisition accords with the Group’s clear strategy of growing its Engineering Services business, where it can secure strong framework positions with major clients in sustainable markets supporting critical UK infrastructure.

“Clarke Telecom is a leader in a field which is enjoying strong structural growth and broadens Renew’s activities in the Infrastructure market.”

HSBC’s deputy head of corporate banking for Yorkshire, Mike Swift, said:“Renew is going from strength to strength, with strong management who have clear plans for the business.

“This £12 million facility will support Renew’s acquisition of Clarke Telecom, and help provide an even stronger platform for continued growth.”

This was posted in Bdaily's Members' News section by Clare Burnett .