Renew Holdings has announced the purchase of Giffen Holdings for £5 million.

The St Albans-based company specialises in mechanical, electrical and power services within the railway environment.

It currently has four frameworks with Network Rail, as well as six frameworks with London Underground, and has worked for a number of Train Operating Companies.

Giffen employs 123 staff and skilled operatives, who will report to Amco Rail, Renew's rail infrastructure business, following the acquisition.

-- Advertisement --

In a statement, Renew said: "For the year ended 30 September 2016, Giffen is expected to record revenue of approximately £22m and an adjusted profit before taxation of £0.7m. The acquisition cost is £5m for the whole of the issued share capital with a further £2m being required to redeem loans from Giffen's current private equity owners. The whole consideration will be paid from Renew's existing cash resources. At completion, Giffen had a cash balance of less than £75k.

"By acquiring the complementary skills of Giffen, Amco Rail will be able to offer an expanded range of services across the rail network as well as creating opportunities for the Group to provide services to London Underground."

(LM)