The deal, still subject to approval from Renew shareholders, will mean that more than 50% of group revenue will come from its specialist engineering operations.
Amco operates in the rail and energy sectors, offering everything from feasibility, budget and design through to installation, commissioning and maintenance.
Amco's revenue for the nine month period to 30 September 2010 was 拢59.8m and operating profit was 拢4.2m.
The deal will be funded with a new 拢15m term loan from HSBC and out of existing cash resources. In addition to this amount, Renew will pay the vendors compensation for lock-box profits of 拢0.9m and deferred consideration of 拢6.2m.
Renew chief executive Brian May said: "We are delighted to welcome the staff and management of Amco to the Renew group. 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. Amco has a strong and highly experienced management team and I look forward to working with them in the future."
Formed in 1970, operating under the name of Amco 榨汁姬 Ltd, Amco was originally an underground contractor in the UK coal industry, working on tunnelling, roadways and shafts. As the coal industry diminished in the 1980s and 1990s, emphasis shifted to new markets. From the early part of this century, Amco has worked primarily in the rail and engineering sectors (civil, mechanical and electrical) with an emerging energy business developed through its engineering operations.
By 2008, following a management buyout, Amco was established as a multi-discipline specialist engineering company operating in the rail, energy and engineering markets and serving a growing client base across both the public and private sectors.
Amco continues to focus on securing long term frameworks with customers including Network Rail, Magnox Electric, E.ON UK, Scottish Power, Scottish and Southern Energy and The Environment Agency. The rail sector accounts for approximately 52% of its turnover, with 48% from the energy and engineering sector.
Renew said that it plans to continue its strategy of growing in specialist engineering, both organically and by acquisition.
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