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Highlights:

  • HERC acquires Advantage NRG for up to GBP 15.7 million to enter UK power and energy sector.
  • The company adds 155 skilled operatives amid rising demand for overhead electrical line workers.
  • HERC funds deal using cash reserves and GBP 6 million loan from related party Wasdell Holdings.

Hercules plc (LSE:HERC) is a UK-based provider of technology-enabled labour supply solutions, primarily serving the infrastructure and construction sectors. The company operates across the UK and delivers labour, training, and support services to large-scale infrastructure programmes. Hercules pursues a growth strategy that combines organic expansion with selective acquisitions in high-demand, infrastructure-led industries.

The company has announced the acquisition of Advantage NRG Ltd, marking its entry into the UK power and energy infrastructure sector. The deal forms part of Hercules’ strategic push to scale operations in infrastructure-backed industries, following earlier acquisitions in 2023 and 2025.

Advantage NRG, based in Chorley, Lancashire, specialises in labour supply for overhead electrical transmission projects and supports major utility contractors across the UK. The company employs approximately 155 skilled operatives and has established a presence in the high-voltage transmission workforce sector.

Hercules is acquiring 100% of the share capital of Advantage NRG for an initial cash consideration of GBP 10.2 million, with a deferred payment of approximately GBP 1.5 million, and an earn-out clause based on average EBITDA over the 2025–2026 financial years. The maximum total consideration for the acquisition could reach GBP 15.7 million.

For the financial year ended 28 February 2025, Advantage NRG reported revenue of GBP 11.1 million, EBITDA of GBP 1.7 million, and profit before tax of GBP 1.7 million. The company held net assets of GBP 2.5 million at the end of the reporting period.

The acquisition is expected to enhance Hercules’ financial performance and aligns with the company’s objective to support labour needs in sectors undergoing long-term infrastructure investment.

The transaction comes amid a nationwide transformation of the UK’s electricity networks. National Grid has proposed up to GBP 58 billion in investment to support an estimated 64% increase in electricity demand by 2035. This overhaul includes the construction of a north-south electricity spine, offshore connections, and large-scale transmission network upgrades.

The UK’s high-voltage network consists of approximately 20,000 kilometres of transmission lines, including 7,200 kilometres managed by National Grid and 9,300 kilometres in Scotland overseen by SSEN Transmission and ScottishPower Energy Networks.

The demand for skilled overhead linesmen is expected to rise sharply as work progresses. However, the UK continues to face a shortfall in qualified workers to meet this demand.

Hercules aims to use the acquisition to address this gap by leveraging Advantage NRG’s workforce and compliance infrastructure, which includes the ability to sponsor international operatives and develop domestic talent.

This acquisition represents Hercules’ third M&A transaction, following the purchases of Future Build Recruitment Ltd in November 2023 and QTT in June 2025.

To finance the initial consideration, Hercules is using a combination of existing cash reserves and a new GBP 6.0 million loan from Wasdell Holdings Limited, a company controlled by non-executive director and major shareholder Martin Tedham.