Construction group Renew Holdings will pay £38 million for Agger Limited, the parent company of Carnell Support Services.

Renew Holdings, which acquired Strathaven-headquartered QTS in May 2018 in a deal worth £80m, also announced a placing to raise £15m to part-refinance the acquisition.

Paul Scott, CEO of Renew, said: “At our capital markets day last year we highlighted our ambitions to establish a position in new markets including the strategic highways sector. This acquisition represents the realisation of this strategy and we are very pleased to welcome the management and staff of Carnell to the Renew group.

“This is a complementary and earnings enhancing acquisition that aligns with our established and proven strategy, strengthening our position in the UK infrastructure market.

“Carnell has grown to become a leading and well-respected brand in the highways sector and we very much look forward to supporting its ambition for continued growth including opportunities via collaboration across our new range of infrastructure services.”

Aidan Clarke, managing director of Carnell, added: ”Carnell is delighted to join Renew and we look forward to continued success as part of a larger group. The transaction will provide opportunities to leverage added value for clients and wider business benefits from synergies with the existing successful brands within the group.

“It was important to attract an owner with relevant expertise to support our growth ambitions without compromise to service delivery or staff loyalty, and the Renew business model fits perfectly with these aspirations.”