In a strategic move, private equity-owned OCU Group has announced its acquisition of the renowned Scottish civil engineering contractor RJ McLeod (Contractors) Limited. This acquisition is set to bolster OCU’s capabilities in energy transition, particularly in the realms of battery energy storage, wind, and hydro power.
- RJ McLeod will maintain its operational independence and brand under the OCU umbrella, continuing with the same team and locations.
- The acquisition enhances OCU’s market position, poised to surpass £800m in revenue by the 2025 financial year.
- RJ McLeod has established a reputation for excellence, particularly in wind farm projects, evident in their £210m sales and £18.6m pre-tax profit for 2022.
- The joining of forces is seen as a pivotal step towards leading the UK’s energy transition, according to executives from both companies.
In a strategic move, private equity-owned OCU Group has announced its acquisition of the renowned Scottish civil engineering contractor RJ McLeod (Contractors) Limited. This merger is anticipated to significantly enhance OCU’s market position in sectors crucial to energy transition, such as battery energy storage systems (BESS), wind power, hydro power, substation construction, and grid reinforcement.
RJ McLeod will continue to operate under its well-established name, preserving its identity while benefiting from OCU’s broader strategic framework. The contractor will retain its current staff and continue to operate from its existing locations, ensuring continuity and stability for its projects and clients.
The acquisition places OCU in a robust position to see its revenue exceed £800m by the end of the financial year 2025, an increase bolstered by RJ McLeod’s recent robust financial performance, highlighted by £210m in sales and a pre-tax profit of £18.6m up to October 2022. OCU itself reported a turnover of £455m for the year ending April 2023, showcasing its growth trajectory since being acquired by Triton Partners in August 2022.
RJ McLeod, known for its extensive work in wind farms, brings a wealth of engineering expertise and an esteemed reputation to the table. According to OCU chief executive Michael Hughes, the RJ McLeod acquisition marks a ‘key milestone’ in their journey to becoming the leading energy transition and utilities contractor in the UK. Hughes emphasised the enhanced strategic options made possible by this acquisition, reinforcing OCU’s comprehensive delivery capabilities for its clients.
Bruce Clark, RJ McLeod’s joint managing director, expressed pride in the legacy built since 1951, stating a commitment to maintaining and expanding the influence of their team and services within the OCU Group family. The acquisition offers promising prospects for future growth and continued excellence in delivery.
The strategic alliance is poised to spearhead advancements in the UK’s energy transition efforts. This collaboration aims to lead the way in efficiently delivering energy solutions, bolstered by the combined capabilities and experience of both firms.
This acquisition establishes a strong foundation for OCU Group to lead in the UK’s energy transition with enhanced capabilities and strategic growth.
