Second acquisition for Environmental Essentials in ambitious buy-and-build drive

BGF-backed Environmental Essentials has completed its second acquisition, as part of an ambitious buy-and-build growth strategy.

The company, one of the UK’s leading asbestos service providers, has acquired Quality Environmental Services Limited (QES) for an undisclosed sum, providing a significant route into the water / air hygiene sector. The deal follows the acquisition of Adams Environmental in November 2022, which was supported by follow-on funding from BGF – one of the UK and Ireland’s largest and most experienced growth capital investors.

QES – based in Sheffield and Sandbach – is a water and air hygiene management specialist, employing 35 people and working across food manufacturing, healthcare, leisure and hospitality, and education, to develop and deliver air and water quality regimes to organisations. As part of the deal, co-founders, Tim Jones and Dave Beatson, will remain with the business, bringing a wealth of water and air hygiene expertise to Environmental Essentials.

Commenting on the deal, Richard Powner, Executive Director and co-founder of Environmental Essentials, said: “The acquisition of QES makes perfect sense for Environmental Essentials. Water hygiene, air hygiene, and asbestos management, are three major areas of compliance and highly complementary from a business perspective.
“By incorporating the wealth of expertise and capabilities of QES into our business, we can diversify our offering and gain national coverage for our water hygiene services. Not only does it allow us to cross-sell our existing services into new and untapped markets, while providing our workforce with a fantastic opportunity to upskill in the area of water and air hygiene, but it also strengthens our compliance proposition, which includes our recently launched online risk management tool, OMNI.”

The web-enabled asbestos database provides real-time risk and compliance information to help manage property portfolios and associated projects. The software enables companies to store and manage asbestos, Legionella and other compliance-based risks and data in one portal.

In total, BGF has invested £5.6 million in Environmental Essentials, as it looks to cement its position across the UK as a ‘one-stop-shop’ for key compliance services, including asbestos management, water hygiene and fire risk management.

BGF investor, Jon Earl, added: “The acquisition of QES is yet another demonstration of the team’s ambition and desire to build a company that has the strength and depth, in personnel, services and technological capabilities, to meet the growing needs of customers across the compliance landscape.

“BGF’s aim is to invest in innovative and exciting businesses that are vital to the country’s economic growth – dynamic businesses that are well positioned to seize opportunities and manage a multitude of challenges in a measured way. Environmental Essentials is an excellent example of this and we’re delighted to be supporting them with their latest acquisition.”

Based in Stoke-on-Trent and operating from four offices throughout the UK, including Stoke-on-Trent, Glasgow, Crawley, and London, Environmental Essentials employs over 200 people and provides asbestos management, training and surveying to businesses, local authorities and public sector organisations. Clients include the Houses of Parliament, tier one construction companies, NHS Trusts, high street food retailers and pub operators. Richard Powner and James Riley co-founded the business in 2004.
Beswicks Legal and Dains Accountants advised Environmental Essentials on the acquisition. TLT advised QES.

About BGF:

BGF was set up in 2011 and has invested £3.5 billion in over 500 companies, making it the most active investor in the UK. BGF is a minority, non-controlling equity partner with a patient outlook on investments, based on shared long-term goals with the management teams it backs. BGF invests in growing businesses in the UK and Ireland through its network of 16 offices. In 2018, Canada launched its equivalent – the Canadian Business Growth Fund – and in 2020, Australia did the same, both based on BGF’s funding model.