Renew Holdings (RNWH) M&A announcement summary

Deal rationale and strategic fit

• Marks entry into the renewable energy sector and first international expansion, targeting the fast-growing, fragmented onshore wind O&M market in the UK and Europe.

• Access to a scalable, tech-enabled platform with strong customer relationships and high contract renewal rates, enhancing recurring revenue streams.

• Aligns with government commitments to renewables and Net Zero 2050 targets, leveraging energy transition commitments and market tailwinds.

• Full Circle's established presence and recurring contracts align with strategic M&A criteria and support long-term growth ambitions.

• Acquisition provides a platform for both organic and inorganic growth in new and existing territories.

Financial terms and conditions

• Acquisition price is EUR 60 million (enterprise value €60m/£50.5m), representing 10x forecast FY25 EBITDA.

• Funded through existing cash and an increased revolving credit facility (RCF) of GBP 120 million, with leverage expected at 0.4x post-completion.

• Transaction is immediately earnings enhancing and expected to deliver ROIC above cost of capital within three years.

Synergies and expected cost savings

• Full Circle's higher operating margin (14%) is accretive to group margins, with further margin enhancement expected through integration.

• Opportunity to leverage engineering expertise, operational excellence, and scale to support further growth and M&A.