Charterhouse acquires 3i-backed SLR

Kenny Wastell
26 March 2018

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3i has sold its minority stake in UK environmental consultancy business SLR Consulting to Charterhouse Capital Partners, bringing to an end a decade-long holding period.

Unquote understands Charterhouse has taken a majority stake in the company via the transaction.

Charterhouse is currently investing from its 10th fund, which held a final close on €2.3bn in November 2016 and targets companies valued anywhere between €300m-4bn. SLR generated EBITDA before exceptional items of £13.3m in the year ending in October 2016, according to publicly available documents.

Since 3i first invested in the business, SLR has undertaken an acquisitive international growth strategy. It has made 18 acquisitions including Australia-based GSS Environmental, African company Synergistics Environmental Services, US-based Strategic Engineering and Sciences, US- and Canada-based HFP Acoustical Consultants and South Africa-based CCA Environmental.

Its turnover grew from £31.6m in 2007 to £112.6m in 2016, according to publicly available documents, with EBITDA growing from £6.6m to £13.3m.

SLR will continue to pursue acquisition opportunities under its new ownership model. The company's management team and other employees will continue to retain a "significant equity stake" in the business following the deal, according to a statement.

Completion is scheduled to take place by mid-2108.

Previous funding
Livingbridge acquired a minority stake in SLR in 2004. 3i then invested £32.5m for a minority stake in the company in May 2008, in a £100m deal that provided an exit for Livingbridge. In mid-2012, SLR raised £50m to finance acquisition opportunities, with debt provided by Lloyds.

Company
Founded in 1994 and headquartered in Aylesbury, Buckinghamshire, SLR is an environmental consultancy serving clients in the oil and gas, mining and minerals, infrastructure, industrials, built environment and power sectors. It has a headcount of 1,100 across 70 offices worldwide.

People
Charterhouse Capital Partners – Chris Warren (partner).
SLR Consulting – Neil Penhall (CEO).

Advisers
Company – Catalyst Corporate Finance, Andy Currie (corporate finance).