PE Tech Report


Like this article?

Sign up to our free newsletter

OMERS Private Equity and AIMCo sell majority stake in ERM to KKR

OMERS Private Equity and Alberta Investment Management Corporation, on behalf of certain of its clients (AIMCo), are to sell their majority stake in Environmental Resources Management (ERM) to KKR.

UK headquartered ERM is the world’s largest pure-play sustainability consultancy, operating in over 40 countries with over 5,500 partners and employees globally. ERM partners with the world’s leading organisations to create innovative solutions to sustainability challenges and unlock commercial opportunities that meet the needs of today while preserving opportunity for future generations.

Since investing in ERM in 2015, OMERS Private Equity and AIMCo have worked closely with the Company and its management to support the business’ continued growth and development. This growth has been both organic and M&A-driven, with ERM having acquired and successfully integrated 14 highly complementary businesses during OMERS and AIMCo’s investment period.

During this period of sustained financial and operational success, ERM’s management team has been led by CEO Keryn James.

Jonathan Mussellwhite, Senior Managing Director and Head of OMERS European Private Equity, says: “When OMERS invested alongside the management and AIMCo in 2015, we saw an opportunity to back the market leader in an industry with considerable long-term growth potential, led by a proven, highly-capable and ambitious management team. ERM has been a perfect match for OMERS Private Equity, our partnership approach and our substantial, evergreen capital base.

The sale of ERM is OMERS Private Equity’s fourth realisation in Europe and our fifth successful exit globally in the past three years. Each sale has resulted in strong income, supporting OMERS core commitment of delivering sustainable, affordable and meaningful pensions for our members. We continue to look for opportunities to deploy capital across Europe as we build our European Private Equity business.”

James Frankish, Director, OMERS Private Equity, says: “Since 2015, we have supported the Company and its management in ERM’s ambitious growth strategy with great results. As ERM has expanded into new focus sectors such as power, chemicals, and technology, and media and telecoms, ERM has also reinforced its leadership position in corporate sustainability and climate change. ERM moves on from our period of investment significantly enhanced in scale and capability, and well-placed to further deliver critical services to its customers around the world. We wish the business, its management and its employees the very best for the future.”

Peter Teti, Senior Vice President, Private Equity, AIMCo, says: “AIMCo, on behalf of its clients, is proud to have been part of ERM’s journey to be the leading environmental and sustainability advisor globally. Our partnership with the management team and employees of ERM has helped position the Company to grow to new heights with the support of an investment from KKR. We would like to thank the management team and employees of ERM for their unwavering commitment to the Company and its purpose. AIMCo will continue to seek opportunities to partner with great management teams and companies as we continue to grow our global Private Equity platform.”

Keryn James, CEO, ERM, says: “We are thrilled to announce this new partnership with KKR, which will drive a long-term path for growth for ERM – broadening the scope of our client service and deepening our impact on sustainability. I’m so proud of the strong, well-regarded company that we have built, with the support of OMERS Private Equity and AIMCo in recent years. It is our performance working alongside clients to address their most pressing challenges and opportunities that helped position ERM as the right fit for KKR’s investment philosophy.”

The transaction is expected to close in Q3 2021 subject to certain conditions, including regulatory approvals. Financial terms have not been disclosed.

Like this article? Sign up to our free newsletter