Scotland based REL is a leading provider of high-quality services and Road Rail Plant associated with the installation and commissioning of Overhead Line Electrification across the UK.
The deal will allow Renew to further capitalise on the planned increased level of investment by Network Rail into electrification while strengthening its existing multidisciplinary maintenance and renewals engineering services.
By 2040 it is estimated that there will be around 15,000 single track kilometres of new electrification carried out across Network Rail’s infrastructure over this period.
The initial consideration for the deal was £3m in cash, with further deferred cash payments of up to £2.3m payable between now and September 2024, conditional upon the achievement of certain targets.
Paul Scott, Chief Executive of Renew, said: “The rail network has a crucial part to play in supporting the UK’s commitment to Net Zero 2050 and this acquisition will help enable Renew to play a bigger part in Britain’s green economic recovery.
“REL is a highly regarded business with a strong track record and will enable us to broaden our service offering within our Rail business.
“Our existing multidisciplinary rail capability, complemented by the electrification expertise of REL, leaves Renew ideally positioned to play its part in delivering a decarbonised railway.
“Rail electrification offers attractive long term structural growth opportunities underpinned by highly visible committed regulatory spend in a sector that we know extremely well. I am delighted to welcome the management and staff of REL to the Renew family.”