RSK Welcomes Strategic Investment from Searchlight Capital Partners and Ares Management
RSK Group announced a £500 million preferred equity investment from a consortium led by Searchlight Capital Partners and Ares Management funds. An additional £300 million debt facility from Ares brings their total available debt facilities to £1.4 billion. This investment will support RSK's 2030 Global Strategy, including organic growth and acquisitions. Founded in 1989, RSK provides environmental consulting and engineering solutions across various sectors. The new partnership aims to strengthen RSK's position as a global leader in sustainability solutions. CEO Alan Ryder and representatives from Searchlight and Ares expressed their enthusiasm for the strategic partnership and its potential to drive long-term growth and sustainability initiatives.
- £500 million preferred equity investment from Searchlight and Ares.
- Additional £300 million debt facility, totaling £1.4 billion in available debt facilities from Ares.
- Investments to support RSK's 2030 Global Strategy including organic growth and acquisitions.
- Strengthened strategic partnership with Ares since 2018.
- Support for expanding RSK's service offerings and market position in sustainability solutions.
- Increased debt facility by £300 million could heighten financial leverage and associated risks.
- Potential dilution of equity due to preferred equity investment.
Insights
The strategic investment from Searchlight Capital Partners and Ares Management Corporation in RSK Group Limited is significant for several reasons. This
For retail investors, this means that RSK is in a solid position to execute its 2030 Global Strategy, focusing on both organic growth and acquisitions. The financial support enables RSK to expand its market reach and service offerings across Water, Energy, Construction and Infrastructure sectors. This financial stability can potentially lead to increased revenue streams and enhanced market share. However, investors should also be aware of the risks associated with high leverage and the successful execution of their growth strategies.
RSK's focus on delivering sustainable solutions across multiple sectors positions it well in a market increasingly driven by environmental concerns and regulatory changes. The investment comes at a time when global regulatory landscapes are evolving to prioritize sustainability, which could present both challenges and opportunities for RSK.
From a market perspective, the backing by reputable firms like Searchlight and Ares not only provides financial support but also enhances RSK’s credibility and visibility within the industry. This can lead to new business opportunities and strategic partnerships. However, the company's future growth will heavily rely on its ability to adapt to market dynamics and regulatory requirements, which can be unpredictable.
The new investment will support the Company’s continued organic and inorganic growth
Founded in 1989 by its CEO Alan Ryder, RSK and its 15,000 employees provide end-to-end, bespoke environmental consulting and engineering solutions to a vast array of clients across the Water, Energy, Construction and Infrastructure sectors. The additional capital is expected to support the ambitions articulated in RSK’s 2030 Global Strategy, including organic growth initiatives and the continued execution of the Company’s acquisition strategy.
“RSK is very pleased to welcome a new group of investors and further strengthen our relationship with Ares,” said Dr Alan Ryder, Founder and CEO. “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.”
James Redmayne, Partner at Searchlight said “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.”
Giles Marshall, Partner at Searchlight, added “The evolving regulatory landscape, accelerating global energy transition and goal of providing clean water and sanitation for all, present increasing challenges and opportunities for RSK’s customers, which the business is uniquely positioned to execute on. We look forward to partnering with the management team to support their continued growth and industry-leading service.”
Michael Dennis, Co-Head of European Credit at Ares, added, “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.”
About RSK group
RSK is a global leader in the delivery of sustainable solutions, working with more than 8,000 clients in 40 countries on six continents. Its family of more than 200 environmental, engineering and technical services businesses and 15,000 employees work together to provide practical solutions to some of the greatest challenges societies have ever faced.
The company operates in most sectors of the economy, including many of those most critical to future global sustainability, such as water, energy, food and drink, infrastructure, urban development, mining and waste. With its integrated offering across research and development, consultancy and on-the-ground application, RSK can deliver a complete solution that is unrivalled in the market.
The company is certified to the ISO 9001, ISO 14001 and ISO 45001 international standards for quality, environmental management and health and safety management. For more information, please visit www.rskgroup.com.
About Searchlight Capital Partners, L.P.
Searchlight is a global private investment firm with more than
About Ares
Ares Management Corporation (NYSE:ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, real estate, private equity and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of March 31, 2024, Ares Management Corporation's global platform had approximately
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RSK Group
Lisa Templeton | ltempleton@rsk.co.uk
Searchlight
Prosek Partners | pro-searchlight@prosek.com | +44 (0) 7787 7757 14
Ares
Jacob Silber | media.europe@aresmgmt.com | +1-212-301-0376
Source: RSK Group Limited
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