Under the transaction, which values ERM at approximately £585m, Charterhouse will acquire a stake of approximately 65%. The remainder of the shares will be held by ERM partners, whose approval is required for this transaction.
The transaction will see the 440 partners in ERM (including the senior management team) make a substantial reinvestment in the business. The company’s structure, which has combined private equity backing with partner ownership since 2001, means that the 440 ERM Partners both drive and share in the company’s success.
"We are pleased that Charterhouse shares our vision for the future growth of this company as we enter an exciting new stage of our development,” said ERM group chief executive John Alexander. “ERM has completed an outstanding year, with Net Revenues up 12% year on year to US$483m [£298m] and EBITDA [earnings before interest, taxes, depreciation, and amortisation]up 18% to US$76m year on year. With the strong commitment both from our partners, whom I believe to be the best in the field, and Charterhouse as a financial partner, we look forward to building on that performance and expanding our business in a market with very strong growth fundamentals."
‘We have followed the progress of ERM with interest for a number of years,” said Stuart Simpson, a founding and senior partner of Charterhouse. “The company has grown to a size and leading market position that makes this the ideal time for Charterhouse to make an investment in the significant growth potential of this world-class business. We are excited to be working with John Alexander and the ERM team during this new phase of global expansion of ERM."
Chris Busby, partner at Bridgepoint, added: “ERM is a first class business that has capitalised on the market driven opportunity arising from increased regulation, compliance and demand for natural resources and sustainability. It is strongly positioned for a great future.”
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