Portfolio news Socotec

The SOCOTEC Group, a major player in risk management and performance optimization, is speeding up its international expansion and has announced the acquisition of ESG, the UK's leading provider of TIC services in the Construction and Infrastructure sectors. ESG was previously majority owned by 3i Group PLC ("3i") and funds managed by 3i.

ESG's 1,400 employees specialize in testing, inspection and compliance services, and generate almost EUR 100 million in revenue in the Infrastructure, Built Environment, and Energy & Waste sectors. The company, headed by Ian Sparks, operates 28 sites in the UK and Ireland, including 20 UKAS-accredited testing and measurement laboratories.

SOCOTEC CEO Hervé Montjotin commented: "ESG's leadership and its extensive range of services, which will enhance our own scope of expertise, will give us another large base in Europe, second in size to the one we have in France. This acquisition, which will double our revenue outside France, is a perfect fit for our international expansion plans."

ESG CEO Ian Sparks added: "It has been extremely important for us to find an owner that shares our drive for ambitious growth through a client-driven strategy. SOCOTEC, with its global footprint, has an expansive presence, offering inspection and measurement, assistance and consultancy, training and certification services, and works across a number of similar sectors to ESG. This is really good news for both ESG and our clients, as we will be able to provide a wider geographic offering, and also an even broader technical service provision."

With this acquisition, SOCOTEC will have a platform in the UK and take a pivotal step towards becoming Europe's TIC leader in the Construction and Infrastructure sectors. It is aiming to generate EUR 800 million in revenue in 2020.