IK Partners (IK), a European private equity firm, has signed an agreement to invest in HSL Compliance (HSL), a leading provider of environmental compliance services in the UK, alongside the management team and existing investor LDC who are both reinvesting as part of the transaction.
We have advised the shareholders of HSL on the investment.
Headquartered in Herefordshire and founded in 1976, HSL is a leading UK environmental testing, inspection, certification and compliance (TICC) company that provides a range of services across water hygiene, water treatment and other compliance activities. The company boasts extensive national coverage with 19 offices across the UK and Ireland and employs approximately 650 people who serve a diversified base of more than 370 customers across a variety of private and public sectors, including food and beverage, manufacturing, facilities management, healthcare and education.
Since LDC’s investment in 2019, HSL has quadrupled pro-forma revenues to £77 million and doubled headcount to 650 employees, establishing itself as a high-quality business capable of meeting the needs of nationally or regionally complex estates seeking a full-service provider for water hygiene and treatment services, alongside fire and air compliance services. With LDC’s support and follow-on funding, HSL has delivered a successful M&A programme and completed 11 bolt-on acquisitions, significantly increasing the breadth of its UK coverage and client base.
In partnership with IK, HSL will aim to lead the market in delivering solutions that keep its clients’ people protected, their businesses compliant and their environments safe. Through its extensive experience of investing in TICC platforms, IK will work closely with the HSL management team to accelerate growth both organically and through further consolidation of its target markets.
More about the process
We advised on all aspects of the transaction and ran a highly competitive process which delivered a fantastic outcome for the shareholders. The deal further strengthens our position in the TICC sector which continues to be a highly active and attractive market for M&A.
