Renew Holdings has announced its acquisition of Cardiff-based civil engineer Lewis Civil Engineering for £7.9m.
All shares in the Welsh firm, which specialises in the construction and maintenance of infrastructure and water assets, were bought by Renew to expand its engineering services business.
Lewis has around 175 employees and works with clients including Wessex Water and Dwr Cymru Welsh Water through framework agreements.
The Cardiff firm reported an operating profit of £1m on a turnover of £20.4m in the year to July 2012, and Renew expects its turnover to grow by 20 per cent next year while maintaining its operating profit margin.
Renew chairman Roy Harrison said: “Renew’s presence in the environmental market will be significantly strengthened by the acquisition of Lewis.
“This acquisition accords with the group’s clear strategy of growing its engineering services business in sustainable markets, where it can secure strong framework positions with major clients focusing on areas of non-discretionary spend,” he added.
In May, Renew announced its engineering services revenue was up 4.8 per cent to £110.4m on last year (H1 2012: £105.3m), a figure which represents 72 per cent of group revenue.
The £7.9m acquisition of Lewis was funded from Renew’s cash resources and overdraft facilities.
Lewis was 80 per cent owned by Mrs J Lewis, who resigned from the board when the transaction completed.
Managing director David Boden, who owned the remaining 20 per cent, will continue to manage the business on a two-year service contract.