Euro Environmental Group doubles revenues to become market leader

Posted: Thursday 22nd April 2010

Within one week Sovereign Capital, the UK private equity Buy & Build specialist, has created the UK’s leading provider of drain and sewer cleaning, inspection, surveying and repair services; having acquired certain trading assets of Future Environmental Services (“Future”), as the first transaction for the recently backed Euro Environmental Group (“EEG”).

Founded in 1999, Future uses the latest equipment and technology which, when combined with an excellent reputation for service quality and safety, has enabled the business to develop a top tier customer base that includes Balfour Beatty Plc, Scottish Water, Thames Water, Clancy Dowcra, Mouchel and Enterprise.

Future’s strong operational management and systems will complement EEG’s experienced team, led by Rod Spinks, Chief Executive Officer. EEG’s 330 strong workforce are now able to deploy their modern fleet of 250 specialist vehicles from 12 sites across the UK to provide a full range of services, from cleaning small diameter pipes in urban environments to major de-silting operations.

As well as augmenting EEG’s national reach, Future brings additional services to the combined Group, including an expertise in flow monitoring and an extensive pipe lining capability.

Commenting on the transaction, Rod Spinks, Chief Executive Officer of EEG said: “In less than one week since we were backed by Sovereign, we are delighted to have achieved immediate critical mass in our growing market. We very much look forward to working together to further develop our combined presence throughout theUK.”

Andrew Hayden, Managing Partner at Sovereign said: “Future and EEG now have the opportunity to cross sell their capabilities amongst their diverse customer base and benefit from the scale of the combined Group. We will support management to further grow the business and take advantage of the imminent regulatory investment cycle.”

Hayden added: “We would like to thank our advisors, in particularTMGCorporate Finance and KPMG for their invaluable advice and flexible response to this rapid succession of Buy & Build transactions.”

RBS has provided funding to support Sovereign's aspirations within the sector. Alan McCaskie, Director of Structured Finance, commented: "RBS is delighted to be supporting Rod and his team, who have established an enviable reputation in delivering environmental solutions across theUK. In Sovereign Capital, EEG has a financial sponsor with a demonstrable track record in Buy & Build strategies and RBS looks forward to assisting the management team and Sovereign in delivering their growth plan.”

Overall, Sovereign has committed total funding of £20 million to EEG and is actively working with other geographically complementary businesses to deliver its proven Buy & Build strategy.

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