Hercules acquires Advantage NRG for up to £15.7 million

LONDON - Hercules plc (AIM:HERC) has acquired Advantage NRG Ltd, a specialist labour supplier for overhead electrical transmission lines, for an initial cash consideration of £10.2 million, the company announced Friday.

The deal includes a deferred payment of approximately £1.5 million plus a one-year earn-out, potentially bringing the total consideration to £15.7 million. The acquisition marks Hercules’ entry into the UK power and energy sector.

Advantage NRG, headquartered in Chorley, Lancashire, employs approximately 155 skilled operatives who support major utility contractors across the United Kingdom (TADAWUL:4280). For the year ended February 28, 2025, the company generated £11.1 million in revenue, £1.7 million in EBITDA, and £1.7 million in profit before tax.

The initial consideration is being financed through Hercules’ existing cash reserves and a new £6 million loan from Wasdell Holdings Limited, a company controlled by Martin Tedham, a non-executive director and substantial shareholder in Hercules.

This acquisition positions Hercules in the UK’s electricity network transformation sector, which is experiencing increased demand due to government commitments to achieve net-zero targets. National Grid (LON:NG) proposals include £58 billion of investment to support a projected 64% increase in electricity demand by 2035.

The transaction represents Hercules’ third acquisition, following Future Build Recruitment Ltd in November 2023 and the business assets of QTT in June 2025.

The loan from Wasdell Holdings Limited is interest-only, repayable in three years, with an annual interest rate of 8.0%. It constitutes a related party transaction under Rule 13 of the AIM Rules for Companies.

According to the press release statement, the acquisition is expected to be margin and earnings enhancing, and cash generative.

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