Omers considers sale of ERM for £2.5bn – report

A sale process may begin in 2021.

In March 2019, the former director of acquisitions David McArthur said the company was expected to start looking at exit options in the following two to three years, depending on performance and market conditions, according to Unquote sister publication Mergermarket. This timeline was confirmed by the company's CFO Simon Crowe again in June 2020.

Crowe told Mergermarket the company had remained resilient to the coronavirus crisis, with demand growing for its technology and safety products as well as its site surveys, which are conducted by drone.

During Omers' holding period, the company has pursued an active buy-and-build strategy, acquiring companies such as MJ Bradley & Associates in March 2020, Contek Solutions in September 2019 and BrownFlynn in March 2018.

Charterhouse Capital Partners first invested in ERM in 2011, acquiring a 55% stake from Bridgepoint in a deal valuing the business at $950m. Bridgepoint acquired its stake in the company from 3i in 2005 following a €446m investment.

In June 2015, Omers Private Equity acquired ERM from Charterhouse for an enterprise value of $1.7bn. The sale generated a 2.4x return for Charterhouse.

Mark Redman, former Omers senior managing director and head of Europe, told Unquote at the time that the firm had been actively monitoring ERM for the preceding five years, after narrowly missing out on acquiring the business in 2011.

Founded in 1971, the B2B sustainability consultancy has around 5,500 employees. The company increased its 2019 EBITDA by 25% to $121m on revenues 13% higher at $725m.

ERM and Omers Private Equity could not be reached for comment.

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