Pioneers of green growth
International environmental consultancy SLR is renowned for the high calibre of its people and services. 3i will help SLR maintain its rapid growth and enter new markets, including Asia.
Value-added and employee-driven
When David Richards co-founded SLR in 1994, two principles were wired into the company’s DNA: a commitment to the delivery of high-end, value-added services and a belief in the power of an employee driven organisation. As a result, SLR is now a leading name in environmental consultancy. It attracts premium pricing for its world-class technical capabilities, and succeeds in the battle for highly specialised talent by empowering employees and enabling over 200 of them to become SLR shareholders.
From its UK base, SLR has expanded internationally, building a chain of offices across the US and completing the transformational acquisition of SEACOR Environmental in Canada. At the same time, SLR has widened its range of services to reflect the growing importance of environmental issues to both the business and political agenda – advising blue-chip clients in the public and private sectors on issues that range from developing waste strategies to final restoration of mining sites to sustainability and carbon management.
The premium operator
To support its strong expansion, SLR first secured private equity investment in 2004 from ISIS Equity Partners. As the time approached for ISIS to realise its holding, 3i expressed strong interest in partnering with SLR. Professional consultancy is an important area of focus for 3i, and following their successful investment in ERM, the team were particularly keen to work with another business in the environmental space.
3i Partner Richard Bishop has enjoyed a longstanding Board-level relationship with SLR and greatly admires the business. As Richard explains: “I’ve always respected the strength of SLR’s leadership team, service delivery, financial performance and customer relationships. At the same time, it’s clear that rising levels of environmental legislation and awareness will create buoyancy in SLR’s core markets for years to come. Put simply, this makes SLR the premium operator in a highly attractive sector.
Delivering 3i’s network
For SLR’s CEO, David Richards, there was a wide choice of partners: “We received approaches from a number of private equity firms but 3i stood out, not simply because of the strong rapport we had with their team but due to their obvious comfort with being minority investors and the clear value they could add through their global networks.”
The partnership was cemented in May 2008, when 3i invested €41m to acquire a significant minority holding in SLR, in a deal that valued the company at around €130m. The investment enabled ISIS to conclude its participation and gave employee shareholders an opportunity to realise some of the wealth they had created. In addition, substantial funds were provided to facilitate SLR’s continued growth.
Richard Bishop, who joined SLR’s board, comments: “SLR has great opportunities to expand, both organically and by acquisition. I intend to do everything I can to ensure that 3i’s presence across Asia, Europe and North America actively helps SLR achieve its highly ambitious targets.”
Ambitious plans for acquisition
In the weeks after 3i’s investment, SLR completed two acquisitions in Ireland and the UK, further expanding its capabilities. Richard Bishop explains: “In a fast-growing and complex market, talent is the springboard of growth. Acquisitions are an excellent way to bring on board great people, who are then encouraged to remain with SLR through
shared ownership and to contribute their talents across the SLR group.”
“Acquisitions also create the opportunity to move into new territories and allied disciplines, helping SLR to build new revenue streams, deepen existing relationships and explore cross-selling opportunities. With its rapid development of infrastructure and growing environmental concerns, Asia is obviously a key area of interest to SLR. Already, 3i’s Asian network is using its research capabilities, market knowledge and widespread connections to help SLR devise and implement effective entry strategies.”
3i has also made SLR the preferred supplier for the environmental aspects of the due diligence on its investment activities, providing a further significant source of growth.
Towards global market leadership
In partnership with 3i, SLR expects to see turnover and employment grow significantly, positioning the business for a potential IPO. For David Richards, SLR’s past progress and exceptional prospects are a testament to the principles first embedded in 1994:
“Our commitment to employee ownership has enabled us to attract and retain some of the finest brains in the business. This provides great continuity of leadership and the ability to make SLR renowned for the strategic and intellectual content of its advice.”
“In 3i we have the ideal partner for the next phase of our evolution: they respect our heritage and traditions, share our excitement about the future, and are providing the hands-on support that will accelerate our journey towards global market leadership.”
For more information about SLR Holdings, visit:
www.slrconsulting.com