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AIM-listed Hercules has acquired a 70% shareholding in Warrington-based Lyons Power Services (LPS), a specialist provider of power and energy infrastructure services.

The £702,800 transaction is to be satisfied half in cash and half in shares. The remaining 30% shareholding in LPS will continue to be held by the existing owner manager of LPS, David Lyons, who will remain actively involved in LPS.

LPS, founded in 2018, operates within the power and energy infrastructure sector, providing specialist services to clients, which include manufacturers such as Siemens and distribution network operators such as SSE, within the transmission, distribution, and energy markets. Its services include the installation and commissioning of switchgear and substation systems.

In the year to 31^st January 2025, it generated revenues of £1,387,000 and profit before tax of £287,000.

The acquisition follows Hercules’ takeover of overhead linesmen supplier Advantage NRG in June this year, further widening its already client base in the energy and power sectors.

Hercules chief executive Brusk Korkmaz said: “We are pleased to welcome Lyons Power Services into the Hercules Group. This acquisition strengthens our presence in the critical power and energy infrastructure sector, providing both diversification and long-term growth opportunities.

“LPS and its expertise in the booming power and energy sector will dovetail nicely with our previous acquisition, Advantage NRG. The partnership structure ensures that we retain the entrepreneurial drive of the LPS management team, while leveraging Hercules’ resources to scale the business further.”

David Lyons, managing director of Lyons Power Services, added: “Hercules’ scale, reputation, and client relationships will allow us to accelerate our growth while continuing to deliver the high-quality services our clients expect. We believe our vision for the future is aligned with that of the Hercules management team at what is an exciting time for the infrastructure sector.”

Under the terms of the partnership agreement, David Lyons can sell his remaining 30% interest to Hercules, between the seventh and 10th anniversary of completion, at a consideration based on a multiple of four times the average EBITDA achieved by Lyons Power Services in the two years preceding the minority interest sale. After 10 years, Hercules has the right to acquire any remaining minority interest held by Lyons, based on the same calculation.

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