Member Article

West Yorkshire engineering firm Renew sells new build business for £2.75 million

Aberford-based engineering and infrastructure group Renew, has announced the disposal of Allenbuild Ltd, the new build affordable housing part of Renew’s Specialist Building business.

Allenbuild has been sold to Preston-based Places for People Group Ltd, for a total consideration of £2.75 million, payable in cash.

PFP have acquired 50% of the issued share capital for £1.375 million which has been paid in full.

The second tranche whereby PFP will assume 100% ownership of Allenbuild will occur after ten outstanding contracts reach practical completion, which is expected to be in about twelve months’ time.

During the joint ownership period, Renew will retain the benefit of these ten contracts and PFP will have the benefit of four new contracts and any further new work which Allenbuild subsequently procures.

In its results for the year ended 30 September 2014, Renew will account for the results of Allenbuild as a discontinued business.

The effect of this transaction will reduce reported Specialist Building revenue from continuing operations for the year ended 30 September 2014 by approximately £50 million but that there will be no impact to the expected operating profit from continuing operations.

The transaction is expected to have a similar impact on results from continuing operations for the year ending 30 September 2015.

Debbie Jackson and Graham Mackenzie advised Renew on the transaction. Debbie Jackson said: “We are delighted to be working with Renew again and this is our third transaction in six months for them.

“This highlights the upsurge in deal activity across the market that we have seen in general this year.”

Usman B Malik of Grant Thornton Corporate Finance originated and advised Renew on the transaction.

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