Our Companies
Company
Entec
Sector
Services
Location
Newcastle
Status
Current
Background
Entec is a leading environmental and engineering consultancy with 14 offices throughout the UK. It is a multi-disciplinary service provider offering engineering design, project management, and environmental assessment to a broad range of markets.
Deal Information
Deal size: £30 million
Deal size at exit: £70 million
IRR: 33%
Money multiple: 3x
Date of investment: October 2005
Date of exit: March 2010
Sold to: Amec plc
Bought from: Northumbrian Water
Investment rationale and value creation
We backed a highly experienced and proven management team with a clear view on value growth. Entec has a strong market presence in water through its relationship with its former parent and an enviable position in environmental consultancy. It has developed a diverse client base and a broad service offering. The positive market dynamics are underpinned by legislative and regulatory changes.
Our investment rationale was supported by significant growth opportunities across Entec‘s key sectors of water, waste and energy. During the time of our investment Entec increased profits by over £6m by exploiting positive drivers in its core sectors and increasing margins by growing environmental revenues. This excellent financial performance and their growing market position attracted an offer from Amec plc who saw a good strategic fit with their European Earth & Environment business.
