Gyrus reaps 8.6x money from partial dss+ exit to Inflexion

Gyrus saw an 8.6x money multiple from the exit, a source close to the matter told Unquote.

Formerly known as DuPont Sustainable Solutions, dss+ became an independent consulting firm after the Gyrus-backed carve-out separated it from DuPont in 2019, according to a press release. Since then it has grown organically and through the acquisition of three organisations, namely Toronto-based consulting firm Lodestone Partners in 2020, US-based ESG consulting firm KKS Advisors in July 2021, and Italy-based sustainability and agri-food firm Perfect Food Consulting.

The deal was completed via Gyrus 1 LP, a Guernsey single asset limited partnership designed for this investment alone, the same source told Unquote. The firm held a final close for its debut Gyrus Principal Fund on EUR 430m in August 2021. It invests in European firms with an EV of EUR 30m-EUR 300m, according to Unquote Data.

Following Inflexion's investment, dss+ will work with the sponsor to enhance its offering both organically and through M&A in a fragmented market, according to a press release. Business services is one of Inflexion’s core sectors, with partnerships alongside firms such as UK-based software provider specializing in risk management, Alcumus and UK-based law firm specialising in pensions, investment consulting and insurance, Lane Clark & Peacock LLP, it said.

The deal follows several recent deals in the environmental consultancy sector, such as Charterhouse’s sale of SLR Consulting to Ares in June 2022, KKR’s acquisition of a majority stake in ERM in 2021 and Palatine making a minority investment in Anthesis.

The Inflexion investment marks the fifth deal from Buyout Fund VI which closed on GBP 2.5bn in March 2022, a second source close to the matter told Unquote.

Inflexion has made three deals in Europe in the past two months following its acquisitions of minority stakes in Netherlands-based secondment and recruitment agency YER in December 2022 and German-based healthcare business Proteros last month.

Inflexion is currently fundraising for its Inflexion Partnership Capital Fund III, according to Unquote Data. The vehicle was registered in August 2022 and is set to follow its predecessor's strategy, dedicated solely to minority investing.

Inflexion and Gyrus Capital declined to comment.

Company
Formerly known as DuPont Sustainable Solutions (DSS), the company rebranded as dss+ in February 2022. It was founded in 1968 as the consulting arm of DuPont de Nemours and was carved out in 2019. Headquartered in Switzerland, it is primarily focused on consulting to high-risk industries where safety, culture transformation, operations and sustainability services are mission critical. Its client base includes companies and brands, such as Nespresso, Athens Stock Exchange, Pirelli, Nissan and Danone.

People
Gyrus Capital − Guy Semmens (managing partner).
Inflexion − Isabelle Pagnotta (partner), Henrik Nordman (investment director), Claire Vassie (investment executive), Nick Rosenberg (investment director).
dss+ − Davide Vassallo (CEO).

Advisers
Buyer − BCG (commercial due diligence); EY (financial due diligence, tax); Travers Smith, Walder Wyss (legal); KPMG (ESG); Crosslake (tech); Gallagher (insurance).
Vendor  − Deloitte (financial due diligence), Lenz & Staehelin (legal).

[Editor's note: The People section has been amended to correctly identify the members of the Inflexion team.] 

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