RNWH Renew Holdings Plc

RNS Number:8851A
Renew Holdings PLC
26 July 2007



Renew Holdings plc
("Renew" or the "Group")


Acquisition of Specialist Engineering business





Renew is pleased to announce that it has acquired the whole of the issued share
capital of Seymour (C.E.C.) Holdings Limited ("Holdings"), the holding company
for its operating subsidiary Seymour (Civil Engineering Contractors) Limited ("
Seymour"), the engineering services provider specialising in the water sector,
for a cash consideration of #6.8 million.



Seymour, based in Hartlepool, was founded in 1978 and is one of the leading
civil engineering businesses in the North East of England. It provides
specialist environmental services including water infrastructure development and
maintenance, flood alleviation and coastal protection, as well as urban renewal
and other infrastructure services to customers in both the public and private
sectors. Further information on Seymour's activities can be obtained from its
website, www.seymourcec.co.uk



The acquisition is in line with the Group's stated strategy of developing its
Specialist Engineering activities through making complementary acquisitions.
Alongside a natural association with Renew's Land Remediation activities,
Seymour's Water capability adds a third major specialism to the Group's
Specialist Engineering business stream, which also includes Nuclear.



Three quarters of Seymour's work is generated from longer-term framework
agreements and negotiated contracts, including the benefit of a #10 million per
annum framework agreement with Northumbrian Water Limited, with whom Seymour has
worked for over 20 years. Seymour's expected margins are in line with the
Group's target margins for its Specialist Engineering activities. The
acquisition is expected to enhance Renew's earnings per share in the year ending
30 September 2008. Seymour's management, who did not own a material percentage
of Holdings, is remaining with the company following acquisition.


Seymour's turnover for the financial year ended 30 June 2007 was #20.7 million
with an operating profit of #0.7 million.  At the date of acquisition, Seymour
had tangible net assets of approximately #2.1 million including a net cash
balance of #0.9 million and an order book of signed contracts of #13.8 million.



Brian May, Chief Executive of Renew, commented:



"Seymour is an excellent business with a highly experienced workforce and
management team. It provides a very good fit with Renew, both operationally and
culturally, based on quality of service and developing long term relationships
with key customers.  It has a proven track record of delivering projects to a
high standard, safely, on time, within budget and with a high degree of
innovation. This is an important step forward in the expansion of our higher
margin Specialist Engineering activities, which now make up more than 25% of
Renew's turnover.



The Group's existing business continues to trade in line with expectations and
we expect to provide further information before the end of our financial year."


26 July 2007

Enquiries:

Renew Holdings plc                                    Tel: 020 7522 3200
Brian May, Group Chief Executive
John Samuel, Group Finance Director

College Hill                                          Tel: 020 7457 2020
Matthew Gregorowski






                      This information is provided by RNS
            The company news service from the London Stock Exchange
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