Private equity giants circling RSK, but no deal imminent says Cheshire group

Cheshire sustainable solutions group, RSK, is being circled by a raft of private equity suitors.

The Helsby-based group, which has been driven by founder and chief executive, Alan Ryder, to become a global player with more than 200 companies under its wing, could be valued at well in excess of £1bn in any deal.

Mr Ryder owns around 40% of the group, which employs more than 15,000 in 40 countries around the world.

Carlyle, one of the world’s biggest private equity firms, is among RSK’s suitors, reports Sky News.

City sources claim that talks could lead to the acquisition of a large minority stake in RSK, which sponsors football clubs Charlton Athletic, and Warrington Town.

In its last accounts, RSK revealed its revenues had hit £1.2bn.

Launching its strategy to 2030 last August, RSK said it expects to double its number of clients from its current 10,000 to 20,000 in 2030. It said its workforce will steadily and significantly increase from 12,000 staff in 40 countries today to 40,000 people. It expects to control around 400 companies by 2030.

After its first decade, the group’s turnover at the end of 2000 was £5m with an impressive leap to £61m recorded following strategic acquisitions between 2001 and 2010.

That figure more than doubled, reaching £147m by 2018 and then more than doubled again amid COVID (£350.5m in 2021) when acquisitions continued at pace. The business reached £1.2bn (management accounts) at the end of fiscal year 2023. While acquisitions have played an important role in this rapid growth trajectory, RSK said it has benefited from strong organic growth year on year.

It expects to exceed £5b in revenues by 2030.

RSK clinched a £1bn sustainability-linked finance facility with US-based global alternative investment manager, Ares Management, in 2021.

Mr Ryder said last August: “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.”

RSK said that no deal had been agreed with an investor and that it was not close to doing so.

An RSK spokesperson told TheBusinessDesk.com: “RSK has been public about saying they are looking to raise equity.

“But it is still looking and is still in discussions with a whole range of prospective investors.”