Penkridge highways business bought for £38 million
A specialist engineering services business in Penkridge has been bought for £38 million.
Carnell Support Services, which has its headquarters in Market Place, Penkridge, has been sold to Leeds-based engineering services group Renew Holdings as part of its takeover of Carnell's parent company Agger.
Carnell, founded in 1992, provides highways maintenance services, mainly to Highways England with whom it has worked since its formation.
The company operates across England and Scotland, with the exception of the Greater London area, and has regional offices at Leyland in Lancashire and Wakefield in West Yorkshire.
Renew said its acquisition growth strategy and ambitions to establish a position in new markets remained on track with the purchase of Carnell. It is seen as an excellent fit for the group.
The operational management team of Carnell, led by Aidan Clarke, is being retained to continue to drive the business forward under Renew’s ownership.
Carnell is expected to see sales of £664m this year and a pre-tax profit of £41.8m.
Renew intends to acquire 100 per cent of the issued share capital of Agger and has announced a share placing to raise £15m to part finance the acquisition.
Paul Scott, chief executive of Renew, said: "We are very pleased to welcome the management and staff of Carnell to the Renew group.
"This is a complementary and earnings enhancing acquisition that aligns with our established and proven strategy, strengthening our position in the UK infrastructure market.
"Carnell has grown to become a leading and well respected brand in the highways sector and we very much look forward to supporting its ambition for continued growth including opportunities via collaboration across our new range of infrastructure services."
Carnell managing director Aidan Clarke said: "Carnell is delighted to join Renew and we look forward to continued success as part of a larger group.
"The transaction will provide opportunities to leverage added value for clients and wider business benefits from synergies with the existing successful brands within the group.
"It was important to attract an owner with relevant expertise to support our growth ambitions without compromise to service delivery or staff loyalty, and the Renew business model fits perfectly with these aspirations."