HSL Compliance
Deal News | Feb 04, 2025 | IK Investment Partners (IK Partners)
IK Partners, a prominent private equity firm, has agreed to invest in HSL Compliance through the IK Small Cap III Fund. HSL, a leading UK provider of environmental compliance services, has previously partnered with LDC, a part of Lloyds Banking Group, which will also reinvest for a minority stake alongside IK as the majority owner. The transaction aims to support HSL's ongoing growth trajectory. HSL has a strong presence in the UK with 19 offices and serves over 370 customers across sectors like healthcare, education, and manufacturing. Since LDC's initial investment in 2019, HSL has grown significantly, quadrupling revenues to £77 million and embarking on an ambitious M&A program that successfully executed 11 acquisitions. The partnership with IK is expected to leverage IK’s expertise in buy-and-build strategies, thus accelerating HSL’s growth in its target markets.
Sectors
- Environmental Services
- Private Equity
- Testing, Inspection, Certification & Compliance (TICC)
Geography
- United Kingdom – The article centers around HSL Compliance, a UK-based company, and the investment activities of IK Partners in the UK market.
Industry
- Environmental Services – The article discusses HSL Compliance, a company providing environmental compliance services, indicating a focus on this industry.
- Private Equity – The investment and reinvestment activities of IK Partners and LDC classify this article as relevant to the private equity industry.
- Testing, Inspection, Certification & Compliance (TICC) – HSL Compliance operates within the TICC sector, providing essential compliance services across various regulations.
Financials
- £77 million – HSL Compliance's revenue after significant growth in the past few years.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| HSL Compliance | Target Company | Company | A leading environmental compliance services provider in the UK. |
| IK Partners | Investor | Company | A private equity firm investing in HSL through its IK Small Cap III Fund. |
| LDC | Reinvesting Minority Stakeholder | Company | Part of Lloyds Banking Group, LDC is a private equity investor reinvesting in HSL. |
| Gavin Hartley | CEO | Person | The CEO of HSL Compliance. |
| Tom Salmon | Partner | Person | Partner at IK and Advisor to the IK SC III Fund. |
| Jonathan Bell | Managing Partner | Person | Managing Partner at LDC. |