3i leads $285m management buy out of Environmental Resources Management
3i, a leading international venture capital company, has today announced the completion of a $285m management buy out of Environmental Resources Management Group (ERM), the leading global supplier of environmental management consulting services. The transaction was initiated by Close Brothers who also advised ERM on the deal structure.
ERM has grown rapidly to become the global leader in its field with current year revenues of $300m. This investment of $78 million will allow the company to focus on continued growth and 3i is one of the few venture capital companies worldwide that has the network, resources and experience to support a management buyout of this scale, value and complexity. Under the deal, the employees retain a significant stake in the business.
Founded in 1977 by Paul H. Woodruff, ERM is the largest provider of environmental consultancy for major corporations operating across a broad range of sectors. Woodruff, 63, served as Group CEO through 1999 and retired on April 1 st this year. ERM has 2,500 specialists operating from more than 120 offices in 34 countries.
ERM provides a growing range of environmental services, both technical and management in nature, as the business community seeks competitive advantage from improved environmental management. These range from environmental auditing, site clean up and environmental impact assessments to risk management and strategic planning advice.
3i is in an ideal position to support ERM by drawing upon 3i's global network of 40 offices in Europe, Asia Pacific and the US to provide support for ERM's management team in all of its markets.
The ERM global management team is being led by Dr. Robin Bidwell, who will be executive chairman of the Board. Peter Regan will become the company's global Chief Executive Officer, having previously been CEO of North America since 1999. John Deal, Jr., Managing Director of ERM's Southeastern Operations since 1998, will assume the role as CEO of North America.
Gary Addison, at 3i said: "3i's investment in ERM demonstrates our significant commitment to the support services sector. The environmental consultancy industry is forecast to achieve double-digit growth and with such exponential growth year on year a future IPO is envisaged by both the investors and the management team. With this investment, 3i can fully support ERM and help it achieve its goals of offering a global service."
Dr. Bidwell said: "With spending on environmental consulting services growing at around 15 percent per year globally and projected to rise to over U$80 billion in 2003, ERM is well placed to capture the largest part of this market.
The 3i investment allows us to continue our growth and to create a single global organisation able to offer our clients a seamless worldwide service. Companies around the world are becoming increasingly aware of the way environmental and social issues can impact their business. This is a very exciting time for our people and our business."
Source: 3i
Subscribe to our free e-mail newsletter.