Environmental consultancy RSK Group, which has a turnover of more than £1bn, has secured a £500m investment.
The Cheshire-headquartered company, which employs more than 15,000 people and operates in 40 countries, has received the investment from a consortium led by Searchlight Capital Partners, L.P, and Ares Management Corporation funds.
Ares has also committed an incremental £300m debt facility to further support RSK’s growth plans, bringing total available debt facilities provided by Ares to £1.4bn.
RSK Group, founded in 1989 by chief executive Alan Ryder, provides environmental and sustainability services to clients such as major water companies.
The deal comes after it was reported in March this year that private equity giant Carlyle was one of several parties in discussions over providing investment.
Ryder said: “RSK is very pleased to welcome a new group of investors and further strengthen our relationship with Ares.
“This strategic partnership marks a pivotal moment for RSK as we take another step towards our long-term vision of becoming the world’s largest and most trusted provider of sustainable solutions.
“Searchlight and Ares’ expertise in our industry, combined with their track record of supporting growth initiatives, will be instrumental as we execute on our M&A strategy and expand our service offerings.
“After three decades, RSK remains committed to delivering environmental and engineering services to help government and business clients around the world achieve a more sustainable future. The opportunities for RSK increase at pace.”
Earlier this year, RSK Group posted a revenue of £1.22bn, which was up by more than 50 per cent, while its pre-tax losses doubled to £81m in the year to April 2023.
Searchlight partner James Redmayne added: “We are delighted to be partnering with Alan and the RSK management team, as they embark on the next phase of their journey to becoming the leading global provider of sustainability solutions for their customers.
“The unique employee-ownership culture of the business provides the perfect platform for RSK to continue its stated mission of striving to address the current and future impacts of climate change.”
Ares Management co-head of European credit, Michael Dennis, said: “Since our initial investment in 2018, we have seen firsthand RSK’s commitment to helping advance the energy transition through differentiated client solutions.
“We are excited to increase our financial commitment alongside Searchlight and further support the company’s focus on identifying new investment opportunities and developing innovative capabilities that can drive more sustainable business outcomes and long-term growth for RSK.”