The move will see 230 Carnell staff join Renew.
Carnell is based in Staffordshire with offices in Leyland and Wakefield.
The company is a Tier one and two supplier to Highways England working through a series of Asset Delivery framework agreements.
Carnell specialises in infrastructure civils, specialist drainage, lighting and electricals and technology and innovation.
Finacial forecasts for the year to September 2020 predict a £48m turnover for Carnell generating an operating profit of £4.7m.
The management team at the business will be retained following the deal.
Paul Scott, CEO of Renew, said: “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.”
Aidan Clarke, Managing Director of Carnell, added: “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.”