Infrastructure and energy firm OCU Group has acquired Scottish civils company RJ McLeod in a strategic move to bolster its position in the UK’s shift towards net-zero carbon emissions.
- The acquisition is expected to increase OCU’s annual revenue to more than £800 million.
- RJ McLeod will maintain its established brand identity while enhancing its service capacity under OCU’s ownership.
- This transaction marks a significant step in OCU Group’s ambition to dominate the UK utilities contracting market.
- RJ McLeod’s focus on renewable energy projects aligns with the Scottish Government’s green energy targets.
OCU Group’s acquisition of RJ McLeod, announced on 11 June 2024, represents a strategic advancement in its efforts to become a leader in the UK’s energy transition sector. By bringing RJ McLeod into its fold, OCU aims to increase its annual turnover to more than £800 million, further expanding its ability to support critical projects aimed at achieving net-zero carbon emissions across the UK.
Commenting on the acquisition, Michael Hughes, OCU’s chief executive, described it as a pivotal moment in the company’s journey towards becoming the leading contractor for energy transitions and utilities in the UK. Meanwhile, RJ McLeod will continue to operate under its own name, leveraging its existing reputation and networks in the infrastructure sector while benefiting from the increased resources and reach that OCU provides.
RJ McLeod, established in 1951 and currently based in Glasgow, has been recognised for its significant contribution to the renewable energy sector. The company has been involved in various projects aligned with the Scottish Government’s objective to build 20GW of onshore wind capacity by 2030. Their expertise extends to battery storage, hydroelectric projects, and the construction of grids and substations, areas which are integral to modern green energy infrastructure.
Financially, RJ McLeod has reported a turnover that exceeded £200 million for the first time, despite a decrease in pre-tax profits to £18.6 million from the previous year’s £25 million. The company employed an average of 441 people in 2022, notable for its high placement in industry rankings and its role in a £1 billion utilities framework co-led with McLaughlin & Harvey.
OCU Group has a proven track record of strategic acquisitions, having acquired several firms in its 2022/23 financial year to expand its capabilities. This included acquiring London-based Modus. OCU’s recent financial history shows a turnover of £454.5 million and a pre-tax profit of £7.7 million, indicating steady growth and financial health that would support such significant acquisitions. Their selection for substantial projects, such as £1 billion of upgrades to the electricity network in southern England, further underscores their industry significance.
This acquisition strategically positions OCU Group to lead the UK’s energy transition landscape.
