IN Brief:
- Excalon Holdings has acquired Porter Brothers Holdings, parent of PBU (UK), for consideration of up to £50m.
- PBU adds horizontal directional drilling, underground cable installation and utility engineering capabilities.
- The initial £31.1m payment has been funded through existing banking facilities, with a further £18.9m dependent on profit targets over three years.
Renew Holdings has acquired Porter Brothers Holdings, parent company of horizontal directional drilling and utility engineering contractor PBU (UK), for consideration of up to £50 million, extending its specialist construction capabilities across electricity transmission and distribution infrastructure.
The acquisition has been completed through Renew’s wholly owned subsidiary Excalon Holdings. An initial £31.1 million has been paid in cash, with up to £18.9 million of additional consideration payable if the vendors achieve specified profit targets during the following three years.
The transaction was completed on a cash-free, debt-free basis, with the initial payment financed through Renew’s existing banking facilities. The conditional element forms part of the maximum £50 million consideration but is not expenditure already incurred.
PBU specialises in extra-high-voltage cable installation, horizontal directional drilling and associated civil engineering work. Based in Sedgefield, County Durham, the contractor operates across utility infrastructure projects involving electricity, water, gas and telecommunications networks.
The acquisition adds trenchless construction equipment and underground installation expertise to Excalon’s existing capabilities. Renew has been expanding its electricity infrastructure operations through a series of acquisitions intended to bring more engineering disciplines within its direct delivery organisation.
Horizontal directional drilling allows pipes, ducts and other services to be installed beneath obstacles without excavating an open trench across the entire route. The technique can be used beneath roads, rivers, railways and established infrastructure where surface excavation would create significant access or construction constraints.
Work typically begins with an assessment of the required alignment and the ground conditions along the proposed route. A pilot bore is then drilled using equipment capable of controlling the direction of the drilling head, with the bore enlarged where necessary before the pipe or duct is installed.
The drilling contractor must account for the diameter and properties of the product being installed, the length and curvature of the route, and the forces imposed during installation. Ground conditions also affect the stability of the bore and the techniques used to remove excavated material.
Drilling fluids can be used to support the bore and transport cuttings, depending on the selected method and ground conditions. Their use requires appropriate management to reduce the risk of unwanted fluid movement into surrounding ground, watercourses or existing infrastructure.
Where underground electricity cables are installed, the drilled route may accommodate ducts through which cables are subsequently pulled. Cable installation also requires consideration of permissible pulling forces, bending radii, thermal conditions and access to jointing locations.
The suitability of a trenchless route cannot be established by drilling capability alone. Cable system design, ground conditions, utility crossings and the space available for launch and reception arrangements determine whether the proposed installation method is practical.
PBU operates 30-tonne and 50-tonne directional drilling rigs, alongside excavators, specialist transport vehicles and other equipment supporting utility construction. The rig designations describe equipment capability rather than the weight of the material being installed or the diameter of a completed underground service.
The contractor also undertakes conventional trench excavation, duct installation, cable laying, reinstatement and associated civil works. These services allow different installation techniques to be combined where a route passes through areas with varying ground conditions or surface constraints.
Open-cut installation may remain appropriate for accessible sections of a cable route, while directional drilling can be used at particular crossings. A project combining both methods needs suitable interfaces between buried ducting, cable joint bays and the adjoining sections of the network.
PBU’s published service portfolio includes high-voltage and extra-high-voltage cable installations, joint bay construction, testing and utility connections. It lists cable installation and associated work up to and including 132kV, alongside jointing and terminating services extending to 400kV.
Those are different service capabilities and should not be interpreted as a claim that every activity in the contractor’s portfolio is routinely delivered at 400kV. Equipment, personnel authorisations and construction methods vary according to the voltage and technical requirements of each project.
PBU is accredited as an Independent Connections Provider, allowing it to undertake relevant design, installation and connection activities within the scope of its accreditation. Its operations also include feasibility studies, route surveys, engineering design and the provision of specialist personnel.
Excalon already delivers services across electricity network infrastructure. Renew has added further capabilities through its acquisitions of Emerald Power, Electricity Distribution Engineering Services and PWR-X, expanding the range of work available through the group.
These businesses contribute different engineering functions, including overhead line maintenance, electricity infrastructure services and cable jointing. The addition of PBU extends the organisation’s capacity for underground installation and associated construction.
Renew intends to offer clients a broader combination of design, civil engineering, cable installation and connection capabilities. This can reduce the need to allocate every stage of a network project to a separate specialist business, although the actual delivery structure will depend on individual contracts and client requirements.
The acquisition is aligned with planned expenditure on the UK’s electricity transmission and distribution networks. Renew has identified approximately £50 billion to £60 billion of investment across the RIIO-ED2 and ET3 regulatory periods and beyond as a market opportunity supporting its expansion.
That investment relates to the wider regulated electricity networks sector rather than contracts awarded to Renew. The company’s potential share will depend on procurement, project schedules, its technical qualifications and the commercial arrangements established with network operators and other clients.
Renew valued the acquisition using sustainable earnings before interest and tax of £3.9 million and earnings before interest, tax, depreciation and amortisation of £5.5 million. The company expects the transaction to enhance earnings immediately, with further acquisition payments tied to future performance targets.
Paul Scott, chief executive of Renew, identified PBU’s specialist capabilities as complementary to the group’s existing regulated energy operations. Renew plans to integrate the business while continuing to develop its position in electricity transmission and distribution engineering.
The acquisition establishes additional trenchless installation and high-voltage construction capacity within Excalon. PBU will continue delivering its specialist utility work, while the three-year performance period will determine whether any additional consideration becomes payable to the former owners.
