KKR buys sustainability consultancy ERM at $three billion valuation
The international investment firm KKR has acquired a majority stake in the global consulting firm ERM, which values the sustainability specialist at up to 3 billion US dollars.
Environmental Resources Management (ERM) is a multinational consulting firm headquartered in London. The company describes itself as the largest pure sustainability consultancy that supports its customers in their environmentally friendly ambitions from boardrooms to boots. The focus is on sustainability strategy and implementation, health and safety as well as the implementation of best practices in the areas of environment, social affairs and governance (ESG).
ERM has grown rapidly over the past decade, accelerated by a buy-and-build strategy that has seen over 20 acquisitions since 2010, including First Option in early 2021 and Sustainalize last month.
Now that ERM is keen to maintain its momentum, the company has received a significant funding injection from KKR, one of the world’s largest private equity groups (and a longstanding client of ERM’s advisory services). With this move, KKR will acquire a majority stake in ERM from OMERS Private Equity and Alberta Investment Management Corporation, while ERM’s management team and partners will remain minority investors.
Keryn James, ERM’s Chief Executive Officer, commented, “At ERM, we are committed to working with each of the world’s leading companies to achieve their sustainability goals. This long-term partnership with KKR will enable us to expand and accelerate the impact of our customers and bring new skills and technologies to the business of sustainability. “
KKR’s investment is made through the Core Investment Strategy, which is capital aimed at longer term opportunities. The transaction is expected to close in the third quarter of 2021, although the financial terms of the transaction have not been disclosed.
The KKR partners Mattia Caprioli, Tim Franks and Ken Mehlman, Managing Director Franziska Kayser and Director Rami Bibi made the following in a joint statement on this topic: “Real expertise in sustainability and environmental issues is more important than ever. We are proud to invest in a consulting firm like ERM as they continue to help companies implement ESG management best practices in their operations. “
ERM employs more than 5,500 people worldwide in 160 branches in over 40 countries.
