Palatine buys significant minority stake in Cura Terrae

Wahida Ahmed
21 March 2022

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Private equity firm Palatine has acquired a significant minority stake in Cura Terrae, a newly established UK-based environmental services group.

The company comprises three businesses: Ecus, an environmental consultancy service that supports the development of UK infrastructure and services; Envirocare, a consultancy that provides occupational hygiene services and stack emissions testing; and EMS an environmental monitoring and consultancy provider.

According to a press release, the newly formed company will benefit from a network of central services like HR and finance.

Palatine's investment manager Greg Holmes told Unquote the sponsor was involved in a sale process run by Lava Advisory Partners that saw the participation of a number of private equity bidders. "We had a relationship with the business since 2019 and ultimately our relationship with the company and the shared values ensured we won the process," he said.

The company said in the statement that its interest aligns with Palatine's Impact Fund as well as its buy-and-build record, which attracted it to the sponsor.

The GP declined to comment on the stake size but said it was a significant minority shareholding. A number of shareholders exited the business while a few including CEO Peter Skipworth and other senior management team members hold a minority stake. Palatine confirmed it was the single largest minority shareholder in the business.

The fresh capital will allow the business to pursue suitable M&A opportunities and is essential to the company's growth plans, said Holmes. The business will also be pursuing organic growth, according to the press release.

Palatine invested through Palatine Impact Fund, which held a final close on its hard-cap of GBP 100m in September 2017. This is the first impact fund the GP has raised, according to Unquote Data. The vehicle targets businesses that have a positive social impact providing tickets of less than GBP 10m. It will invest in a range of themes, which includes ethical consumerism, lifestyle and wellbeing, integrated health, and the circular economy.

Company
This transaction forms Cura Terrae, a Sheffield-based environmental services company. According to the company's website, it provides holistic wellness, herbalism, spirituality, and skincare. The common shareholder among the businesses comprising the group is professor Peter Skipworth, an experienced entrepreneur who continues to be the CEO. Each business will retain its area of expertise and incorporate an ESG framework as well as a returns-focused impact investing strategy, according to the press release. Piers Clark, a water sector professional, will join as non-executive chair of the group; Palatine's Impact Fund partner James Gregson, who led the investment, and Holmes will join the board; Sara Blannin will join as finance director.

Collectively, Cura Terrae employs almost 240 staff and expects to grow its team to 300 by the end of 2022 amid organic growth, with combined revenues of around GBP 18m, according to the press release.

People
Cura Terrae – Peter Skipworth (CEO).
Palatine – James Gregson (partner); Greg Holmes (investment manager).

Advisers
Vendor - Lava Advisory Partners, Claire Davis (corporate finance); Freeths, Andy Francey, Megan Atack (legal); Brown Butler, Craig Hughes (tax).

Equity - Hill Dickinson, David Mkhitarian, James Down, Graeme Anderson (legal); Cortus Advisory, Nicola Merritt, James Milton (financial due diligence), Armstrong, Peter Cookson (commercial due diligence); RSM, Colin Smyth, Martin Cooper, Jake Hodgson (tax).