BGF – the UK and Ireland’s most active growth capital investor – has committed a further £2.4 million to support Environmental Essentials’ buy-and-build growth strategy.
Environmental Essentials, co-founded by Richard Powner & James Riley back in 2004 is now one of the UK’s leading asbestos service providers and has secured follow-on investment from BGF to support the acquisition of Adams Environmental.
Alex Sleeth joined the board of Directors back in early 2020 and has a wealth of experience in “buy and build” within the sector. Also joining the board is Martyn Crowfoot an experienced M&A specialist who also joins the board as Financial Director.
Adams Environmental, which specialises in the listed building and education sectors, servicing high-profile buildings such as the National History Museum and Imperial College London, is the company’s first acquisition.
It signals the start of an exciting growth phase for Environmental Essentials, as it looks to expand its geographical footprint and diversify its service offering. The additional equity funding has been committed to support future acquisitions.
Commenting on the growth plans, Sleeth said: “This is a really exciting time for the business as we look to broaden our compliance service offering and complement our existing services in Asbestos and Health & Safety Training for our high profile customers. With additional funding secured we are confident in our ability to deliver a comprehensive growth strategy for our clients, staff and shareholders”.
Based in Stoke-on-Trent and operating from four offices throughout the UK, including Stoke-on-Trent, Glasgow, Crawley, and London, the business provides asbestos management, training and surveying to businesses, local authorities and public sector organisations. Clients include the Houses of Parliament, tier one construction companies, NHS Trusts, high street food retailers and pub operators.
Commenting on the deal, Powner said: “We’re delighted to welcome Adams into the Environmental Essentials fold. This marks a significant step forward in our growth ambitions, on the back of a strong trading period throughout the Covid pandemic, and is another positive milestone on our investment journey with BGF, which has had a considerable impact on our business since 2015.
“Asbestos management has been a core part of our business since we launched 18 years ago. However, we believe that there is significant potential to expand our offering, not just geographically but also by diversifying into complementary areas, including water hygiene and fire risk management. This will not only strengthen our proposition, but provide clients with a ‘one-stop-shop’ for key compliance services.”
BGF investor, Jon Earl, added: “Since 2004, Richard and James have built up a strong reputation in asbestos management. The acquisition of Adams Environmental enables them to strengthen their position in important markets, such as listed buildings and education. Through an exciting buy and build strategy, the team will also be able to expand their compliance offering as well as investing in proprietary technology, as well as training and development.”
Beswicks (legal) and Dains (financial due diligence and tax) advised Environmental Essentials, Ashfords (legal) and Henry Hyatt (financial due diligence and tax) advised Adams Environmental, Browne Jacobson (legal) advised BGF.
About BGF:
BGF was set up in 2011 and has invested £3 billion in nearly 500 companies, making it the most active investor in the UK. BGF is a minority, non-controlling equity partner with a patient outlook on investments, based on shared long-term goals with the management teams it backs. BGF invests in growing businesses in the UK and Ireland through its network of 16 offices. In 2018, Canada launched its equivalent – the Canadian Business Growth Fund – and in 2020, Australia did the same, both based on BGF’s funding model.
About Environmental Essentials:
Environmental Essentials is a UKAS accredited asbestos management company operating nationally across a broad range of property owners such as Retail, Housing, NHS, Public and Government Buildings. The company attributes its success to their customer focused service through their committed and highly qualified staff.