PE-backed risk and compliance company makes third acquisition in three months

West Midlands-based HSL Compliance, an SGI company, has acquired East Anglia-based water compliance specialist Jordan Environmental to support its national growth ambitions.

The acquisition gives HSL Compliance a foothold in the East of England, enabling it to better serve customers in the region and UK-wide contracts with an on-the-ground presence.

The transaction is the latest milestone in the risk and compliance leader’s acquisitive growth strategy and follows the business’ acquisition of South Lanarkshire-based DMA Canyon in August 2022.

The move will also expand HSL Compliance’s specialist offering, adding Jordan Environmental’s Closed Water Treatment Services to its market leading water compliance proposition.

HSL Compliance specialises in water, hazardous materials, fire safety and associated health, safety and environmental services. Part of SGI Compliance Group (SGI), HSL Compliance is one of the UK’s leading companies in the legal compliance market. It helps customers to comply with relevant legislation and to protect their staff from hazardous materials or activities.

Jordan Environmental provides a range of services that complement HSL Compliance’s existing water compliance offering. Founded in 1996 by Alan Jordan, the business specialises in water hygiene and treatment, with clients spanning the education, construction and facilities management sectors. Cambridge University is the business’ biggest client, and its average length of client relationship is 14 years.

Following HSL Compliance’s acquisition, Jordan Environmental will continue to operate under its existing branding, with head of operations Jason Weston continuing to lead the day-to-day running of the company. Managing director Alan Jordan will stay in post for a year to support the transition of the business before retiring after more than 25 years at its helm.

Jordan said: “This is a really important landmark for our business, at a time when demand for our services is at an all-time high. Over the last 25 years we’ve transformed from a small, family-run company into a regional market-leader, and I’m excited to see how our people and services will continue to grow as a part of HSL Compliance.”

Gavin Hartley, chief executive of HSL Compliance, added: “Jordan Environmental is the perfect partner to support the next stage of our growth journey as we pursue our ambition to become the UK’s leading water compliance provider. Alan, Debbie and the team have built a business based on deep-rooted client relationships and industry-recognised expertise.

“We’re looking forward to building our presence in the East of England further, and plan to bring more businesses across the country into the fold as we drive our nationwide expansion.”

As part of SGI, HSL Compliance is backed by mid-market private equity firm LDC. LDC’s North West investment team – based in Manchester – first invested £20m to back the carve out of SGI from global testing, inspection and certification group Kiwa, in May 2019. This transaction marks the fourth acquisition the business has completed since partnering with LDC.

The deal team at HSL Compliance was led by Tom Taylor and Gavin Hartley with external financial due diligence support from Ross Wiggins of Menzies (London), and legal support from Arpinder Dhillon of Harrison Clark Rickerby (Ross-on-Wye).

Jordan Environmental was advised by Jonathan Hewett and Simon Ratcliffe of Greene & Green (Bury-St-Edmunds).