Acquisitive RSK looks to raise £500m through stake sale

Aaron Morby 9 months ago
Share

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.”

 

Latest news

Berkeley subbies face six weeks without payments

Introduction of new finance software means payment hiatus for suppliers
11 hours ago

Pagabo reveals 56 winners of latest £1.6bn retrofit deal

Decarbonisation Solutions Framework launched: Full list of winners
11 hours ago

Go-ahead for £100m Liverpool Love Lane flats

500-flat scheme will be built across four blocks in Vauxhall area of city
11 hours ago

Unions win HS2 site access battle at Old Oak Common job

Skanska, Costain, Strabag JV now the last denying unions access to HS2 sites
10 hours ago

Contractors jack 1,100t viaduct into place in 13-hour operation

158m-long composite deck structure jacked into place 10-hours ahead of schedule
11 hours ago

Wates wins former Daily Mail printworks transformation

British Land advances major cultural venue at London’s Canada Water
1 day ago

Mace poaches Ramboll chief to be Head of Engineering

Martin Feakes will develop civil and structural engineering offer at Mace
1 day ago

Subcontractors form alliance for major civils jobs

Trio of specialists join forces to collaborate and offer Tier 1 contractors a turnkey solution
1 day ago

Fear of supply chain failures boosting collaboration

Procurement survey also reveals project bank account use is rising
1 day ago

Wates sets up business to target 160,000 mouldy social homes

Healthy Homes service will be offered to social landlords across England
1 day ago

Higgins wins £75m Peabody Passive House job

Latest phase of Deptford Landings to start construction
1 day ago

Contractors and unions agree Sizewell C working deal

New deal offers improved sick pay and parental leave over Hinkley Point deal
2 days ago

Competition chiefs win legal fight for more construction raids

High Court rules CMA officials can raid a domestic property as part of investigation
2 days ago

More Osborne companies file administration notices

Three more divisions lodge notices with court
2 days ago

McLaren wins multi-storey urban logistics contract

South London win with British Land is pioneering urban logistics hub
2 days ago

Big social housing schemes at risk over funding uncertainty

Housing associations warn uncertainty over public funding beyond 2026 is curbing new schemes
2 days ago

Kier wins Worcestershire town centre renewal

Firm secures Bromsgrove commercial and cultural hub project
2 days ago

BAM signs Kent school contract at £42m

Sevenoaks school rebuild signed off at £8m more than first estimates
2 days ago

RG Group signs £121m Newcastle rental homes job

Developer Olympian Homes advances 519 flats plan at Pottery Lane site
5 days ago

Geoffrey Osborne files administration notice

Contractor in talks to save parts of the business
5 days ago

Winners named for £260m Manchester Uni framework

B&K, Henry Bros, Graham, Robertson and Vinci among new line-up
5 days ago

Shed specialist Benniman rides out market lull

Worcestershire warehouse builder says industrial and logistics work is picking up again
5 days ago

Another contractor cleared after high profile immigration raid

Adana Construction employees were working legally on site swooped on by Home Office
5 days ago

McAleer & Rushe wants to meet new London suppliers

Contractor holding Meet the Buyer event in London: Register now
5 days ago

McAlpine signs £500m Broadgate dual towers deal

Work to start on iconic 36-storey and 21-storey towers
6 days ago

Worker rescued from collapsed four metre deep trench

Fire crews take six hours to save trapped builder near Blackwall Tunnel
6 days ago

Gove puts another major building scheme on hold

Secretary of State starts another planning fight after M&S defeat
1 week ago

Greenwich University tenders £300m framework

Up to five firms will carry out upgrade and newbuild work at three campuses
6 days ago

Work starts on Manchester 26-storey Obsidian tower

Contractor Domis starts Salboy's 10th Manchester scheme in seven years
6 days ago

Race for £1.3bn West Midlands social homes framework

The Community Housing Group reboots tender race for new build housing
6 days ago

Contractor services