Ambienta makes 20% IRR on Envirogen sale to Promethean et al.

According to unquote" sources, Ambienta reaped an IRR of around 20% on its four-year holding of Envirogen. 

The sale follows a strategic refocus for the Amplio Group holding, of which Envirogen was a part prior to the exit. According to Amplio CEO Riccardo Segat, the divestment of the water business comes as Amplio seeks to prioritise its energy operations.

The group of acquirers was headed by Promethean, a special-situations-focused firm headquartered in London. The GP drew capital from its £150m second fund, which writes £10-20m cheques for distressed companies within the UK lower-mid-market.

The deal, marking the end of an auction process for Envirogen, comes four years after Ambienta injected €16.1m into the business to become a minority shareholder. The deal was financed via its maiden fund, which closed on €218m in October 2009. Having been closed to new investments, the vehicle still holds five or six companies, unquote" understands. 

At the time, the GP stated it would support Envirogen's international expansion, with plans to hit the €100m revenue mark by 2014 with the help of an estimated 6-7% growth for the global water market.

Under Ambienta's four-year holding, the business has reportedly doubled turnover to €50m and pushed EBITDA from €900,000 in 2010 to €6.5m in 2015. Growth from its former UK base has been accomplished organically and via three bolt-ons on European and US soil.

Company
Founded in 2009 by Riccardo Segat and Andrea Davi, Envirogen is focused on the treatment of water, wastewater, vapour emissions and the recovery of materials. The company operates under the Envirogen Water Technologies name in the UK, with headquarters in Cheddar, and runs its US operations under the Envirogen Technologies brand from its base in Kingwood, Texas. It most recently posted a €6.5m EBITDA from revenues totalling €50m.

People
Ambienta's work on the sale was coordinated by partner Mauro Roversi. Riccardo Segat currently chairs Envirogen.

Advisers
Vendors – Altium, Adrian Reed (Corporate finance).

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