The East of England and East Midlands team of mid-market private equity firm LDC has made a significant investment in Stonbury, the UK water and environmental sustainability specialist.
The national business, headquartered in Bedfordshire, has a 40-year heritage of working with UK water companies and environment agencies to deliver innovative, low-carbon solutions to maintain, repair and refurbish their critical assets, from drinking water provision to wastewater treatment, helping to protect supplies and extend asset lives.
The company also delivers nature-based solutions to help customers operate more sustainably and mitigate the impacts of climate change. These range from restoring rivers to increase their capacity to retain water and boost biodiversity, to implementing natural flood management programmes that include artificial wetland creation and river channel works.
Stonbury employs around 300 people across 11 locations in the UK. It recorded revenues of £44.7m in its latest financial year ending June 2022.
LDC’s investment will support the business’s existing management team, led by CEO Trevor Hoyle, former CEO of environmental consultancy group RPS’s EMEA divisions. The team will increase its support for customers by expanding its range of water, wastewater and nature-based, low-carbon environmental services, through organic growth and acquisitions. LDC will also help the business to further expand into clean energy solutions.
The transaction was led by David Bains, partner and head of East Midlands and East of England at LDC, and investment managers Nicole Wong and Mikayil Salahov. David and Nicole will join the Stonbury board, with Ian Burnett also joining as non-executive chairman. Ian brings board-level experience of working with other private equity-backed businesses.
Trevor Hoyle, CEO of Stonbury, said: “Sustainability sits at the heart of the challenge water companies and environmental organisations are facing. Creating a more resilient and efficient water network and a healthier, safer environment will be vital to reduce the impact of significant weather events. Stonbury is well-equipped to support our clients with low-carbon and nature-based solutions.
“We knew from the moment we met David and the LDC team that they were the right investment partner for us. Their relationship-first approach and extensive network of connections were important factors in our decision. With LDC’s support, we are actively exploring organic and acquisitive opportunities to expand our range of services.”
David Bains, partner and head of East Midlands and East of England at LDC, added: “LDC is committed to helping companies that contribute to a more sustainable future. Stonbury’s clear purpose focuses on sustainability and its experience and expertise over many years make it well-placed to support the water and environment industries in mitigating the impacts of climate change.
“We’re looking forward to supporting Trevor and the rest of the management team to continue building Stonbury into one of the UK’s leading critical infrastructure services businesses.”
Stonbury was advised by MacIntyre Hudson (Corporate Finance) and Howes Percival (Legal).
LDC was advised by FRP (Corporate Finance and Debt Advisory), Browne Jacobson (Legal), KPMG (FDD) and Armstrong (CDD).
