Hercules PLC (LSE:HERC) has acquired utilities contractor Advantage NRG Ltd for up to £15.70 million.
Lancashire-headquartered Advantage NRG provides highly skilled linesmen for the construction and maintenance of overhead electrical transmission lines. It counts the UK’s major utility contractors among its customers.
Last year, the twelve months to 28 February 2025, Advantage NRG generated £11.1 million of revenue, £1.7 million of earnings (EBITDA) and £1.7 million of pre-tax profit.
The transaction sees Hercules pay £10.2 million in cash, plus £1.5 million in deferred payments, along with ‘earn-outs’ that bring the deal value to £15.7 million.
Brusk Korkmaz, Hercules' chief executive, described it as “another important milestone in Hercules' growth journey”.
Hercules’ move into the power and energy sector comes as the UK, via the government and National Grid plans, aims to deliver major upgrades to Britain’s electricity networks.
These upgrades are intended to meet a projected 64% rise in electricity demand by 2035.
“As the UK accelerates investment in critical power and energy infrastructure to ensure energy security, enhance transmission and distribution networks, and meet its net-zero targets, the demand for highly skilled labour has never been greater,” Brusk Korkmaz said in a statement.
"Advantage NRG's deep expertise in overhead electrical transmission, and its ability to source, train and mobilise specialist linesmen, both in the UK and internationally, perfectly complements our strategy.
Krokmaz added: "We believe this strategic investment will enable Hercules, the Hercules Academy and Advantage NRG to grow together and play a pivotal role in supporting the delivery of the UK's essential energy infrastructure."
The transaction is being funded from existing cash plus a new £6 million loan from Wasdell Holdings Limited, a vehicle controlled by Hercules non-executive director Martin Tedham.
The loan carries 8% interest, is repayable in three years and is secured by a secondary debenture.
The shares were up 3%.