IK Partners takes majority stake in HSL Compliance to fuel growth

The deal sees IK partnering with HSL’s management team, who will reinvest in the company. At the same time, LDC, the private equity arm of Lloyds Banking Group, retains a minority stake. Financial terms were not disclosed, and the transaction remains subject to regulatory approvals.

Founded in 1976 and headquartered in Herefordshire, HSL provides testing, inspection, certification, and compliance services across water hygiene, water treatment, and other environmental compliance activities. With a workforce of 650 employees across 19 offices in the UK and Ireland, HSL serves over 370 clients in sectors including food and beverage, manufacturing, facilities management, healthcare, and education.

Under LDC’s ownership since 2019, HSL has quadrupled its pro-forma revenues to £77m and expanded significantly through 11 bolt-on acquisitions. This, in turn, enhanced its UK coverage and client base. The partnership with IK Partners aims to accelerate growth, both organically and through further acquisitions, as HSL continues to expand its service offering in environmental compliance.

IK Partners brings extensive experience in investing in testing, inspection, certification, and compliance businesses. It will work alongside HSL’s management to enhance its market position. The investment reinforces HSL’s commitment to keeping clients’ operations safe, compliant, and environmentally responsible.

Source: IK Partners

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