Aaron & Partners acts for Business Growth Fund as it backs Environmental Essentials
8th December, 2015
Environmental Essentials, one of the UK’s leading asbestos service providers, has received £3.2m in funding from Business Growth Fund (BGF) to pursue continued organic and acquisitive growth.
Based in Stoke-on-Trent and operating from six offices throughout the UK, Environmental Essentials provides asbestos management, training and surveying services to corporates, local authorities and public sector institutions. Clients include Asda, Marks & Spencer, The Co-operative Group and Savills. Richard Powner and James Riley co-founded the business in 2004.
Environmental Essentials has demonstrated consistent growth in recent years and for the year ending 30 September 2015, the company is on track to generate revenues of around £10m.
The management team will use BGF’s funding to open a national asbestos training centre in Stoke-on-Trent and a new office in Aberdeen focused on the oil and gas sector which will create further jobs across the business.
Looking further ahead, BGF funding will support selected acquisitions of businesses in asbestos and complementary health and safety and compliance services in strategically-relevant regions of the UK.
Simon Cashmore, current CEO of TCL Group, the landscape services, estate management and play space services provider which is also backed by BGF, will join the Environmental Essentials’ board as non-executive chairman.
Richard Powner, co-founder and Director at Environmental Essentials: “There is a sizable market opportunity for us to go after in the UK. With BGF’s support we are now in a position to accelerate our growth plans across the UK whilst continuing to deliver first rate customer care to our existing clients.”
Mark Freer, Investor, who joins the Environmental Essentials’ board on behalf of BGF, said: “This is an exciting opportunity for us to back a business that is clearly highly regarded by its customers in a market in which there is enduring demand. “Asbestos is an issue that affects a significant proportion of UK commercial and public sector buildings and Environmental Essentials is one of a handful of operators able to provide a truly national service as demanded by major corporate clients.
“We look forward to working with Richard, James and the rest of the team to help them deliver their ambitions for the business.”
The investment was led for BGF by Mark Freer, Paul Brindley and Saarung Shah.
The advisers to the transaction were:
For Environmental Essentials
Legal and Lead Advisory – Knights (David Williams, Mark Soboljew)
Legal – Aaron & Partners LLP (Hugh Strickland, Eve Lakin)
Tax – Whittingham Riddell LLP (Duncan Montgomery, Francesca Hutcheson, Katie Bell)
Financial Due diligence – Mark Harrison
Notes to editors:
BGF (Business Growth Fund) is the UK’s most active provider of growth capital to small and mid-sized businesses. BGF makes initial investments of between £2m and £10m and can provide additional funding to support further growth. The investment provided is typically in the form of equity in return for a minority equity stake and a seat on the board for a BGF director. BGF will provide long-term equity investment for companies with strong growth potential.
BGF is an independent company with capital of up to £2.5 billion and is backed by five of the UK’s main banking groups – Barclays, HSBC, Lloyds, RBS and Standard Chartered. BGF is managed autonomously with an independent management team.