Renew Holdings has agreed an £80M deal to acquire the Scottish rail contractor QTS.
QTS, headquartered in Drumclog, Scotland, has eight offices across the UK and was founded in 1992 by Alan McLeish and now has a direct workforce of more than 300 employees.
The firm undertakes civil asset management, geotechnical and earthworks, fencing, devegetation, drainage, specialist plant hire and training.
QTS managing director Alan McLeish said: “QTS is delighted to be joining the Renew Group and we very much look forward to the future as part of a larger group. The transaction will provide opportunities to expand our market share and benefit from the synergies with their existing successful brands working in highly regulated sectors. It was important to attract an owner with relevant expertise to support our growth ambitions without compromise to customer service or staff loyalty, the Renew business model fits perfectly with these aspirations.”
Renew chief executive Paul Scott said: “We are delighted to welcome the management and staff of QTS to the Renew group. This is a very complementary and earnings enhancing acquisition that aligns with our established and proven strategy, strengthening our position in the UK infrastructure market. QTS has grown to become a leading and well-respected brand in the rail sector and we very much look forward to supporting its ambition for continued growth including opportunities via collaboration across our expanded range of services in this sector.”
QTS turns over £70M a year, with 90% of that from Network Rail. Gross profit was £19.8M in the year to 31 March 2018, up from £17.5M the previous year.