ERM announces that Charterhouse is to acquire a majority stake in the business
15 May 2011
Environmental Resources Management (ERM), the world's leading environmental consultancy, announces that Charterhouse Capital Partners has agreed to acquire a majority stake in the company as part of a management buy-out from Bridgepoint. Under the transaction, which values ERM at US$950m (approx £585m), Charterhouse will acquire a stake of approximately 65 per cent. The remainder of the shares will be held by ERM Partners whose approval is required for this transaction.
John Alexander, Group Chief Executive of ERM said: "We are pleased that Charterhouse shares our vision for the future growth of this company as we enter an exciting new stage of our development. ERM has completed an outstanding year, with Net Revenues up 12 per cent year on year to US$483 million and EBITDA up 18 per cent to US$76 million year on year. With the strong commitment both from our Partners, whom I believe to be the best in the field, and Charterhouse as a financial partner, we look forward to building on that performance and expanding our business in a market with very strong growth fundamentals."
Stuart Simpson, a Founding and Senior Partner of Charterhouse said: ‘We have followed the progress of ERM with interest for a number of years. The company has grown to a size and leading market position that makes this the ideal time for Charterhouse to make an investment in the significant growth potential of this world-class business. We are excited to be working with John Alexander and the ERM team during this new phase of global expansion of ERM.
Chris Busby, Partner at Bridgepoint, added: “ERM is a first class business that has capitalised on the market driven opportunity arising from increased regulation, compliance and demand for natural resources and sustainability. It is strongly positioned for a great future.”
The transaction will see the 440 Partners in ERM (including the senior management team) make a substantial reinvestment in the business. The company’s structure, which has combined private equity backing with Partner ownership since 2001, means that the 440 ERM Partners both drive and share in the company’s success.
Notes to Editors
Advisers to ERM and Bridgepoint
Goldman Sachs International
Weil Gotshal & Manges
Ernst & Young
Environmental Resources Management (ERM) is a leading global provider of environmental, health, safety and social (EHSS) consulting services. It employs 3600 staff located in 130 offices in 40 countries worldwide. Over the past five years it has worked for around 60 per cent of the Global Fortune 500 companies. Clients in the UK include Tesco; ERM has advised the UK’s largest retailer on reducing its carbon footprint.
About Charterhouse Capital Partners
Charterhouse Capital Partners leads and invests in large European buy-outs and has been doing so since the early days of the buy-out market in the 1980s.With over 128 transactions, worth an aggregate €38bn in transaction value, and with 89 per cent of those investments realised, the firm believes that its track record and experience combine to make it one of the most successful private equity firms in Europe
Environmental Resources Management (ERM):
Kate Rogers: +44 20 3206 5200
Nick Cosgrove/ Andrew Garfield: Brunswick +44 20 7404 5959
Stuart Simpson: +44 20 7334 5304/+44 7979 507627
James Murray: + 44 20 7432 3555 or +44 7802 259761.
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