AIM-listed Renew, an engineering and construction group, says the acquisition will boost profits as the business aims to increase revenue in the high-margin specialist engineering sector.
Based in Barnsley, Amco is a conglomerate of three businesses and specialises in engineering projects both in the UK and abroad. In April 2008, the business underwent a £9.4 million MBO that was backed by Endless and headed by managing director David Jackson.
According to an Endless statement, Amco’s turnover last year is expected to be in excess of £75 million. Clients include Network Rail, Magnox, E-on and the Environment Agency.
Renew chief executive Brian May comments, ‘The acquisition of Amco allows Renew to increase and broaden the scale of its specialist engineering operations, as well as adding to the range of services we can provide to our customers.’
Darren Forshaw, the partner at Endless who led the deal, adds, ‘Since the MBO, annual profits have increased more than threefold and the business has expanded its activity across all of its key markets – this at a time when most of its peers have experienced declining turnover and profits.’