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 拢300m debt facility to bring the total available debt facility to 拢1.4bn.
In April 2023 RSK agreed a 拢250m 鈥榰psize鈥� in its existing 拢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 鈥渧ery pleased to welcome a new group of investors and further strengthen our relationship with Ares.
鈥淭his strategic partnership marks a pivotal moment for RSK as we take another step towards our long-term vision of becoming the world鈥檚 largest and most trusted provider of sustainable solutions鈥�.
Ryder added that the new cash injection 鈥渨ill be instrumental as we execute 鈥� our M&A [merger & acquisition] strategy and expand our service offerings.鈥� RSK made 34 business acquisitions last year.
RSK Group has grown rapidly over the past six years with turnover increasing tenfold from 拢112m in 2017 to 拢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 拢81m before tax.
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