HSL Compliance: A New Chapter with IK Partners
Deal News | Feb 04, 2025 | LDC
British private equity firm LDC has announced its exit from HSL Compliance, a provider of environmental compliance services, after a six-year partnership. LDC will maintain a minority stake as it reinvests alongside IK Partners, the new majority shareholder from the IK Small Cap III Fund, and the HSL management team. Founded in 1976, HSL has evolved into a leading environmental testing, inspection, certification, and compliance company with significant UK coverage and employs 650 staff. Since LDC's original £20 million investment in 2019, HSL's revenues have quadrupled to £77 million, supported by a strategic M&A program resulting in 11 bolt-on acquisitions. IK Partners intends to accelerate HSL's growth through organic expansions and further market consolidation, continuing to protect clients, ensure compliance, and maintain safe environments through their expertise.
Sectors
- Environmental Services
- Private Equity
Geography
- United Kingdom – HSL Compliance is headquartered in Herefordshire, UK, and operates across the UK and Ireland.
Industry
- Environmental Services – The article focuses on HSL Compliance, a leading provider of environmental compliance services, which operates in the UK.
- Private Equity – LDC and IK Partners, both private equity firms, are central to the investment and management of HSL Compliance.
Financials
- £20 million – The initial investment made by LDC in HSL Compliance in 2019.
- £77 million – Pro-forma revenues of HSL Compliance after LDC's investment and strategic growth.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| LDC | Previous Majority Shareholder and Continuing Minority Investor | Company | A private equity firm, part of Lloyds Banking Group, invested in HSL Compliance since 2019. |
| HSL Compliance | Target Company | Company | A UK-based provider of environmental compliance services. |
| IK Partners | New Majority Investor | Company | A European private equity firm investing through the IK Small Cap III Fund. |
| HSL Management Team | Reinvesting Team | People | The team managing HSL Compliance reinvesting alongside IK Partners. |