DC Advisory advises IK Partners on its acquisition of a majority stake in HSL Compliance

Background

• IK Partners (IK) is a European private equity firm focused on investments in the Benelux, DACH, France, Nordics and the UK
• Founded in 1976, HSL Compliance (HSL) is a leading UK environmental testing, inspection, certification and compliance (TICC) company which provides a range of services across water hygiene and water treatment, in addition to fire and air compliance services
• HSL has offices across the UK & Ireland, and has established itself as a high-quality business capable of meeting the needs of nationally or regionally complex estates
• HSL has grown rapidly both organically and through 11 bolt-on acquisitions since 2018. At present, HSL has approximately 650 employees who serve a diversified customer base of over 370 customers

Process

• DC Advisory was exclusively engaged by IK to provide M&A advisory services for the acquisition of a majority stake in HSL
• The DC Advisory team provided IK with M&A target mapping, valuation support, exit options analysis and strategic and tactical buy-side advice during the transaction

Outcome

• In February 2025, IK announced that it had entered into an agreement with management and shareholders to acquire a majority stake in HSL
• LDC will remain invested in the business, retaining a minority stake
• Following this transaction, HSL will continue to be led by current CEO, Gavin Hartley, as well as an experienced group of senior management, who will also maintain a shareholding in the business
• IK's acquisition of a majority stake will enable HSL to continue its impressive track record of growth, and to further accelerate its strategic expansion through M&A
• This transaction is subject to customary closing conditions
• This transaction reinforces DC Advisory's expertise in the TICC sector