Region: UK,
Sector: Business & Technology Services

Nature of Business

ESG has firmly established itself as the UK’s leading provider of testing, inspection and compliance services, focusing on three broad customer verticals across the lifecycle of fixed assets – Infrastructure, Built Environment and Energy & Waste. The Group has c.1,400 employees and serves over 5,000 customers. ESG’s services are delivered throughout the UK through a network of 30 sites, with 20 accredited laboratories, supported by a centralised head office in Derby.

Investment Overview

The business was formerly part of the Inspicio Group and was re-branded as ESG following the sale, by Inspicio, of Inspectorate (the Group’s global commodity testing and inspection division) to Bureau Veritas in September 2010 for £450m. ESG subsequently disposed of its Food Testing businesses in the UK and Ireland to Campbell Brothers (ASX listed) in April 2012 leaving a pure play, market leader in the environmental testing, inspection and certification space in the UK.

ESG deploys a customer centric business model focused on service quality and breadth of offering to the customer. With the widest range of services in this sector in the UK ESG is able to deliver million tests a year to its more than 5,000 customers.

This industry leading service solution and breadth of offering, coupled with technical and operational excellence and technological innovation continues to drive above market growth with both existing and new clients. This performance and future growth is underpinned by recent investment in IT, including integrated operational systems into a client portal, and further investment in HR, quality, safety and finance functions.

Our investment has also put the foundations in place for continued acquisitive growth from a strong pipeline of identified, potential targets. 3i has historically supported Inspicio and, more recently ESG, in making 15 acquisitions since 2008. Targeted acquisitions to complement organic growth will continue to be a key driver of value in the business going forward.

Regulatory notice: This transaction involved a recommendation of 3i Investments plc

3i office contact

16 Palace Street
London SW1E 5JD

Tel: +44 (0)20 7975 3131
Fax: +44 (0)20 7975 3232

Private Equity Team
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