Rebrand for Channel 3 Consulting
The transaction is subject to regulatory approvals and is expected to close before year end. The sale will mark the third exit from WestBridge Fund II and will increase the fund distributions to 1.44x drawn down capital with seven assets remaining.
WestBridge backed the MBO of APEM Group in March 2019 and since investing has worked closely with the management team, now led by Leah McGimpsey, to deploy its value creation model and establish the company as a global leader in environmental consultancy.
This has resulted in revenues growing from £10m at investment to over £100m at exit, while EBITDA has increased from £2m to a forecast £25m.
Over the past six years, APEM Group has experienced rapid organic growth supplemented by a strategic buy and build plan that has seen it make nine acquisitions internationally. Most recently, APEM Group consolidated its footprint in the Asia-Pacific region with the acquisition of Australian consultancy AARC Environmental Solutions.
With the sale of APEM Group to Applus+, this deal brings together two highly complementary businesses, enhancing their ability to serve clients across key sectors with broader capabilities and deeper expertise.
The Applus+ Group is a leading player in the testing, inspection and certification (TIC) sector. Headquartered in Spain, it provides an international client base with a range of services to optimise the quality and safety of their operations and minimise their environmental impact.
Peter Barkley, partner at WestBridge, said:
“We have worked closely with the management team to help transform APEM Group into a truly global business.
“Alongside a series of successful strategic acquisitions, we have refinanced the company and supported organic growth through the introduction of a wider service offering into new end markets internationally. All of this has established APEM Group as a leader in its sector and provided a platform for even further growth.
“It has genuinely been a pleasure to work with this team and play our part in such an exciting journey. This outstanding result is built on our core principle of strong partnership and we are thankful to Leah, and the wider management team, as well as Dr Adrian Williams and Dr Stuart Clough who led the MBO and drove the Group’s initial growth, for their efforts during our ownership.
“Applus+ is an ambitious global platform which has strong cultural alignment with the team and we wish the business every continued success.”
Guy Davies, WestBridge managing partner, said:
“The journey we have had with APEM Group is a strong example of the genuine partnership approach to investing that we take. The outcome is a clear example of how our arguably market leading vale creation approach in the lower mid-market creates value in fast growing niche companies. Everyone at WestBridge has thoroughly enjoyed working with the APEM Group team and we wish them continued success.
“This exit, at an 11.5x return, will take our overall fund DPI to 1.4x, maintaining WestBridge II’s independently benchmarked performance as a top 5% fund for its vintage.”
Leah McGimpsey, CEO at APEM Group, said:
“WestBridge has been a fantastic partner to APEM Group over the last six years since their investment. They have been instrumental in our Group’s success to date and setting us on our current growth trajectory and I’m thankful for their support and guidance. As we join Applus+ Group, I’m excited about the opportunity this creates for APEM Group and our almost 1,000 colleagues as we continue to bring the brightest minds in environmental science to solving our clients biggest environmental challenges.
“With our new partner in Applus+, I’m looking forward to continuing to extend our global presence, deliver new innovative solutions for our clients and together with our new colleagues, drive APEM Group to even further success.”