Adler & Allan, which provides environmental risk reduction and advisory services, has announced that the Private Equity business within Goldman Sachs Alternatives will acquire a majority stake in the Company from an affiliate of Sun European Partners, LLP (“Sun European”), subject to customary antitrust and regulatory approvals. The transaction is a key milestone in Adler & Allan’s mission to address industries’ major environmental challenges by reducing pollution and preventing harm to the environment, as well as mitigating the effects of climate change.
Established in 1926 and based in Harrogate, Adler & Allan is a prominent UK-based environmental risk reduction specialist, assisting organizations in managing, improving, maintaining, and upgrading their critical infrastructure across the entire asset lifecycle. The Company is a national turnkey partner to the utilities sector with services ranging from strategic infrastructure advice, monitoring, data and analytics, frontline operational capability, and environmental consultancy. Under Sun European’s ownership, the Company has more than doubled in size and established a Water Services division dedicated to supporting the UK’s largest water utility companies in managing their wastewater and freshwater networks.
As Adler & Allan enters its next phase of growth, with a focus on expanding their service offering to further assist clients with a wide range of environmental risk challenges, the partnership with Goldman Sachs will accelerate the Company’s growth plans both organically through investment in people, innovation, and technology, and through targeted M&A activity to expand its service offering and geographic footprint. The existing management team under the leadership of Group CEO Henrik Pedersen will continue to lead the Company through the next stage of its exciting journey.
Henrik Pedersen, Chief Executive Officer of Adler & Allan, stated: “Today's announcement validates the crucial nature of the services we provide, our dedicated staff, and the growth potential in the environmental services market. I would like to thank the Sun European team for their support during our partnership, which has been transformative for the Company and positioned us well for the future. I am thrilled to partner with the Goldman Sachs team, who share our vision for the next phase of growth, enabling us to continue supporting our customers in overcoming their most significant environmental challenges of the 21st century.st century.”
Jose Barreto and Mihir Lal from the Private Equity business at Goldman Sachs Alternatives, remarked: “Adler & Allan has a 100-year tradition of supporting operators of critical infrastructure assets with their most complex environmental challenges, including pollution, climate change, sustainability, and preventing environmental harm. We have been impressed with the Company’s leading reputation for high service quality, deep technical expertise, and the breadth of their service offering. We are excited to partner with the Adler & Allan team and look forward to accelerating the company’s growth trajectory. We see tremendous value creation opportunity for the business through our platform, both organically, and through a targeted acquisition strategy both in the UK and overseas, with a continued focus on sustainability, climate transition, and water..”
Paul Daccus, Senior Managing Director, and Alexander Wyndham, Managing Director, at Sun European Partners, said: “We are very proud of how much Adler & Allan has grown and succeeded since we invested in 2020. The Company is a special platform, with a strong reputation for excellence, in the expanding environment risk management market. It has been a pleasure working with Bob, Henrik, and the entire Adler & Allan team during our partnership and we are excited to see them continue their growth path with their new investor. We want to thank them for all their hard work and wish them all the best for the future.”
The deal is expected to be finished in the second half of 2024, after receiving usual antitrust and regulatory approvals.
Sun European received advice on the transaction from Houlihan Lokey (M&A), OC&C (Commercial), KPMG (Financial & Tax) and Weil, Gotshal & Manges LLP (Legal). Goldman Sachs received advice on the transaction from Linklaters (Legal), EY Parthenon (Commercial), and KPMG (Financial & Tax).
