Leeds-based Renew Holdings has struck a deal with Scottish contractor QTS to buy the Group for £80 million.

The engineering services company said QTS is an "excellent fit with Renew's established and proven acquisition strategy", with the acquisition set to increase Renew's market share, footprint and specialist positioning in the Rail market.

Renew also revealed it will raise £45m through a share placing to help part-fund the deal.

Paul Scott, Chief Executive Officer of Renew, 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.

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"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."

Alan McLeish, Managing Director of QTS, added: "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."

Headquartered in Drumclog, Scotland. QTS is a specialist independent rail contractor, providing services to the Rail sector via eight operational bases across the UK.

Founded in 1992, the business has a over 300-strong workforce and provides a number of services including Civil Asset Management, Geotechnical and Earthworks, Fencing, Devegetation, Drainage, Specialist Plant Hire and Training.

(LM/MH)