Hydrock

Growth capital and support from BGF enabled Hydrock to undergo a transformative scaleup journey, through a series of strategic acquisitions, leading to a highly successful exit.

Strategic acquisitions

Hydrock adopted an ambitious M&A strategy, successfully acquiring seven businesses over the course of our partnership. Throughout this process, we provided critical input on business fit, pricing, deal tactics and due diligence. We also provided follow-on funding in 2019, enabling a key acquisition, when traditional debt funding was inaccessible (due to the COVID-19 pandemic).

Financial and operational support

During our investment partnership, we played a key role in two bank refinancing processes, providing support and reassurance to new lenders, and ensuring smooth transitions and financial stability. Hydrock also undertook our annual ESG survey, which provided valuable benchmarks and was crucial for value creation at the time of exit.

Scaleup talent sourcing

We introduced Hydrock to Ronnie McCombe, a seasoned professional with over 20 years of experience at KPMG. Ronnie joined the company’s board, as Non-Executive Chair, and his extensive experience with private equity-backed growth companies added significant value.

Alongside this support, we also introduced the team to their Chief Marketing Officer, and provided guidance into team structure (in line with the evolution of the business as it scaled). This included the creation of a new COO role.

Exit route

During our six-year partnership, Hydrock saw significant revenue growth (from £30m to £84m) and profit growth (from £1.8m to £8.3m).

And when it came to exit planning, we were able to provide Hydrock’s leadership team with comprehensive guidance on adviser selection, and supported the sale process to ensure a strong return for all shareholders.

In the end, our partnership successfully facilitated the acquisition of Hydrock by Stantec, a global leader in sustainable design and engineering that’s listed on the Toronto and New York Stock Exchanges.