Posted: 6 June 2023
WestBridge backed APEM secures +£50m growth finance
Portfolio company APEM Group has secured a +£50m debt package as well as additional debt capacity through an accordion facility from Tikehau Capital, the global alternative asset management group, with an additional £7.5m working capital facility from Virgin Money.
The funding refinances the group’s existing borrowings and provides substantial capital to accelerate its ambitious growth strategy. This week, APEM reinforced its position as a leading player in the global environmental sector with the acquisition of Dublin-based Macro Works, its fourth transaction in two years.
APEM has gone from strength to strength since private equity firm WestBridge supported a management buyout in March 2019, and has seen revenue increase from £10m to forecast c.£60m in the current financial year.
APEM attracted interest from a wide range of lenders but selected Tikehau Capital because of its ability to support the long-term growth ambitions of the group, with a capability to provide additional firepower in the future, and its commitment to responsible investing and ESG.
APEM Group chief strategy officer, Leah McGimpsey, said:
“Demand for end-to-end environmental consultancy continues to grow and we are leading the way by constantly evolving a range of highly specialised services, enabling us to be a greater partner to our clients, people and the communities across which we operate.
“Alongside strategic acquisitions, we are committed to maintaining sustainable organic growth by nurturing existing relationships and expanding our service offerings into new regions. Tikehau Capital reinforces our financial strength and brings synergistic values to support our aspirations.”
APEM chief executive officer, Dr Adrian E Williams, added:
“This is an exciting development in APEM’s continuing journey, and the partnership with Tikehau Capital will be pivotal in allowing us to capitalise on the opportunities we see ahead of us and expand our position as the ‘go to’ world-class environmental consultancy.”
Cécile Mayer-Lévi, Head of Private Debt and Paolo Morrone, Head of UK Direct Lending at Tikehau Capital, said:
“APEM’s remarkable organic growth is testament to the company’s forward-thinking approach, exceptional technical expertise and dedication to environmental sustainability while serving highly strategic sectors such as renewable energy and infrastructure. We are delighted to be partnering with the APEM Group in its next chapter of expansion, and supporting its further inorganic growth.
“We are confident that Tikehau Capital's understanding and activities within the broader energy transition and sustainability megatrends will match and support APEM’s ambition in its next phase of growth, as the company navigates the rapidly evolving environmental consultancy landscape."
Peter Barkley, partner at WestBridge, said:
“Onboarding Tikehau Capital as a funding partner is a transformational step in APEM’s journey, providing significant firepower to support further acquisitions both in the UK and internationally to supplement the group’s organic growth strategy. As a long-term funding partner to the group, we are delighted to see Virgin Money continue its support as part of this refinance.
“Our M&A strategy has, and remains, focussed on adding highly specialist, like-minded acquisitions to the group. WestBridge has supported the management team to build a pipeline of high-quality targets and with these facilities on board we expect to make a number of further acquisitions before the end of this financial year.”
