Acquisitive RSK looks to raise £500m through stake sale

Aaron Morby 9 months ago

Acquisition-hungry RSK Group aims to nearly quadruple its turnover to more than £5bn over the next seven years.

RSK founder and CEO Alan Ryder aims to buy around 30 new businesses a year
RSK founder and CEO Alan Ryder aims to buy around 30 new businesses a year

The ambitious growth target would see its corporate family of engineering and environmental services businesses double from 200 and 400.

To fund this next stage of growth, Cheshire-based RSK is looking to raise at least £500m from sales of shares in the business.

This would supplement around £500m from its debt finance provider Ares Management building a £1bn takeover war chest to fund an acquisition spree.

RSK founder and CEO Alan Ryder said: “To fund this next stage of growth RSK will be undertaking a capital raise through a preferred equity instrument.

“Ares has been an exceptional partner to us and I look forward to carrying on that relationship as we bring in new investment.”

Relevant investors may include the likes of pension funds, sovereign wealth funds, private equity investors and alternative capital providers.

Turnover growth timeline

  • 2000 turnover £5m
  • 2010: revenue reaches £61m; pre-tax loss £2.2m
  • 2018:  revenue doubles to £147m; pre-tax loss £9.3m
  • 2021: Doubles again amid Covid  to £350m; pre-tax loss £19m
  • 2022: Revenue £796m; reported pre-tax loss £38m
  • 2023: management accounts forecast £1.2bn

Ryder said: “We are well aware that our growth strategy includes some very big numbers and significant goals for business growth.

“However, this is anchored in our experience of more than three decades spent delivering environmental and engineering services to help clients around the world minimise their impact on the planet.

“We have witnessed the global realisation that urgent action is required if we are to achieve a sustainable future.

“As governments and businesses across all sectors invest heavily in achieving a more sustainable future, the opportunities for RSK increase at pace.

“This leaves RSK with little doubt that it 2030 growth strategy is achievable.”

In an ambitious 2030 strategy, RSK expects to steadily raise headcount from 12,000 staff in 40 countries today to 40,000.

The group will focus on significant international expansion in all regions it currently operates including Australia, Europe, Asia, Latin America, Africa and the Middle East.

RSK Group chief financial officer Abigail Draper said: “Over the past 30 years we have created an enviable diversity of UK businesses operating in most sectors of the economy, including many of those most critical to future global sustainability, such as water, energy, food and drink, infrastructure, urban development, mining and waste.

“Our future growth strategy reflects our intention to now replicate that strength and diversity across the world.”


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