Omers acquires ERM from Charterhouse in $1.7bn deal

The sale has generated a 2.4x return for Charterhouse Capital Partners IX, unquote" understands, giving the vehicle an average exit multiple of 3x from five divestments.

The acquisition was conducted as an off-market transaction, with the Alberta Investment Management Corporation (AIMCo) co-investing in the deal.

Mark Redman, Omers' senior managing director and head of Europe, told unquote" the firm had been actively monitoring ERM over the past five years, after narrowly missing out on acquiring the business in 2011.

Under Charterhouse's tenure, the company undertook an acquisitive growth strategy, bolting on six businesses. Most recently, ERM acquired Norwegian risk management consultancy Safety Design in November 2014 and Brussels-based ReachCentrum in April 2015.

The business will continue to pursue an acquisitive growth strategy, as well as looking to capitalise on the increasing organic growth in the environmental sector, Redman said.

The deal marks the fourth consecutive period under private equity ownership for ERM, having previously been owned by 3i and Bridgepoint Capital.

Charterhouse has been making numerous divestments in recent months. In March, the firm sold its remaining stakes in energy consultancy Wood Mackenzie and card retailer Card Factory; the previous month it agreed to sell its stake in Deb Group, a producer of hand sanitisers and other hygiene products, to SC Johnson.

Previous funding
Charterhouse 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.

Company
Founded in 1977 and headquartered in London, ERM is an environmental consultancy. The business has a headcount of 4,800 across 42 countries and generated a turnover of $940m in 2014 – an increase from $483m when Charterhouse took control.

People
Mark Redman is senior managing director and head of Europe at Omers and Jonathan Musselwhite is managing director at the firm. Peter Teti is head of private equity at AIMCo. Lionel Giacomotto is managing partner at Charterhouse. John Alexander is chief executive of ERM.

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