Engineering Services Group, Renew, has sold Allenbuild, part of its Specialist Building business.

Allenbuild has been sold to Places for People Group Limited (PFP) for a total consideration of £2.75 million cash. The sale is taking place in two tranches. PFP have acquired 50% of the issued share capital for £1.375m which has been paid in full. The second tranche whereby PFP will assume 100% ownership of Allenbuild will occur after ten outstanding contracts reach practical completion, which is expected to be in about twelve months' time.

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During the joint ownership period, Renew will retain the benefit of these ten contracts and PFP will have the benefit of four new contracts and any further new work which Allenbuild subsequently procures. There are arm's length commercial agreements in place which will endure throughout the joint ownership period.

(CD/IT)