Renew said the move will allow it to expand into the electricity transmission and distribution market.

Salford based Excalon specialises in the provision of high voltage infrastructure to the UK electricity sector and has a number of long-term frameworks with electricity Distribution Network Operators (DNO) across the UK.

The initial consideration of £22m has been funded from the Renew’s existing cash and banking facilities.

An additional consideration of up to £2m will become payable in 2025 along with a further £2m in 2026, conditional upon the vendors remaining with the businesses and specific profit targets being achieved.

The valuation of the business was based on Excalon generating a sustainable EBITDA of at least £3m per annum and the profitability of Excalon is expected to be in line with Renew’s current Engineering Services operating profit margin.

Paul Scott, Chief Executive Officer of Renew, said: “This acquisition broadens Renew’s exposure to another critical UK infrastructure market, presenting tremendous long-term growth opportunities.

“It is consistent with our stated strategic objective to expand into new complimentary sectors that have high barriers to entry coupled with resilient attributes.

“This is a highly regarded business with a strong track record in this specialist sector, and I am delighted to welcome the management and staff of Excalon to the Renew family.”