The preferred equity investment is from a consortium led by Seachlight Capital Partners, LP and Ares Management Corporation. In addition, Ares has committed an incremental £300m debt facility to bring the total available debt facility to £1.4bn.
In April 2023 RSK agreed a £250m ‘upsize’ in its existing £1bn debt facility with Ares Capital.
RSK began life in 1989 as a firm of consulting engineers with a focus on water and environmental markets. Fuelled by venture capital borrowing, it has been on the acquisition trail to build turnover and has grown rapidly.
Today it now has more than 200 diverse business units, ranging from asbestos removal to public relations to generator hire.
Founder and chief executive Alan Ryder said he was “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”.
Ryder added that the new cash injection “will be instrumental as we execute … our M&A [merger & acquisition] strategy and expand our service offerings.” RSK made 34 business acquisitions last year.
RSK Group has grown rapidly over the past six years with turnover increasing tenfold from £112m in 2017 to £1.2bn in the year to April 2023 (its most recent accounts).
However the company has reported a pre-tax loss in each of those years, with a loss last year of £81m before tax.
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