The transaction was made through Renew’s subsidiary QTS Group. The goal is to expand Renew’s rail electrification capabilities as moves toward connecting a carbon-neutral rail network accelerate. REL is adding overhead line electrification to its QTS services, which already include vegetation management, drainage, civil engineering and fencing. The acquisition will see REL operate as a wholly owned subsidiary of QTS, which joined Renew in 2018. All of the REL team, including the management trio of Scott Kernachan, Mark Potts and Kenny Barr, will join QTS at its Scottish headquarters in Drumclog. , South Lanarkshire. The initial consideration for the acquisition was £3 million in cash, with a further deferred cash payment of up to £2.3 million due between now and September 2024, subject to certain objectives being met. The purchase was funded from Renew’s existing cash resources. Scotland-based REL provides services and a rail plant associated with the installation and commissioning of Overhead Power Lines (OLE) for both light and heavy rail infrastructure across the UK. Renew said the acquisition brings highly complementary capabilities to the existing rail business and will enable the group to benefit more from Network Rail’s planned investment in rail electrification. It added that the deal enhances and expands the multidisciplinary maintenance and renovation services it provides across the railway network. It is estimated that there will be around 15,000 one kilometer of new electricity delivered across the rail network-controlled infrastructure as part of the UK Government’s commitment to deliver a carbon neutral rail network by 2040 in England and Wales and by 2035 in Scotland. The recently released Williams Railroad review stated that electricity is likely to be the main method for removing carbon from the rail network. Renew CEO Paul Scott said: “The rail network plays a critical role in supporting the UK’s commitment to Net Zero 2050 and this acquisition will help enable Renew to play a greater role in Britain’s green economy recovery. REL is a highly regarded company with a track record of Our current multidisciplinary capacity on rail, complemented by REL’s expertise in electrification, leaves Renew in an ideal position to play its role in delivering carbon-neutral rail. Steel has attractive long-term structural growth opportunities backed by very clear committed regulatory spending in a sector we know well. I am pleased to welcome the management and staff of REL into the Renew family.” Alan MacLeish, managing director of QTS Group, said the company has grown rapidly over the past decade and needs to add to its portfolio of capabilities in order to continue that growth. Comprehensive service to our clients. By adding REL to the QTS portfolio, we are joining forces with a leading company in this field, which will be of great benefit to the business we provide to our customers.” Kernachan added: “With this transaction, we are opening the future of REL to even greater possibilities. Because QTS already has the main contractor license, and a number of frameworks, it really transforms the opportunities for us as experts in electrification. “It also opens up more prospects for our employees, which was an important factor in the sale. As a small business, the opportunity for advancement was limited, but this acquisition will allow for the ability for individual growth and career development.” We have always liked the way QTS operates and its ethos is very similar to what we have at REL, so I am confident it will be a great fit for us and our customers.” Do you have a story? Email [email protected].