SPARK advises Renew on acquisition of Forefront Group

SPARK Advisory Partners Limited (“SPARK”) is pleased to announce that is has successfully advised Renew Holdings plc on its £14.8m acquisition of Forefront Group Limited. Forefront is an engineering services business focused in the gas infrastructure market and operates in the South East of England with its head office in Leigh-on-Sea. The business focuses on the replacement of gas mains and other critical services for National Grid and Southern Gas Networks in London and the South East. Forefront provides its services through framework agreements and employs approximately 350 skilled personnel.

The gas infrastructure market is highly regulated and Forefront’s revenues are derived from the 30 year gas mains replacement programme which involves the replacement of iron gas mains pipes with polyurethane mains.

Forefront specialises in both low and medium pressure outlets up to 48” diameter. The business also deals with emergency gas leaks and has a specialised under pressure drilling capability. Forefront also provides a complete reinstatement service and operates its own material recycling facility.

The acquisition has been funded from the Group’s cash resources and a four year term loan of £12m provided by HSBC Bank plc. Commenting on the transaction, Sean Wyndham-Quin, Partner, said “We are pleased to have once again been able to advise Renew on another successful acquisition. The acquisition of Forefront is earnings accretive and in-line with Renews strategy”.