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Exited

Hydrock External Link

Climate & Sustainability
South West
Growth
2018 - 2024

Hydrock brings sustainable solutions to infrastructure projects across the UK, through its award-winning engineering design, energy and sustainability consultancy services. It was acquired by Stantec in 2024, following a period of impressive growth.

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.

6
Years
4.5x
Revenue
7
Acquisitions
Hydrock engineering design project

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.

Hydrock engineering design services used for the UWE Faculty of Engineering and Design

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.

“BGF has been an excellent partner, and its investment in the business has played a critical role in our growth story. I’m proud of the progress we made in six years — all while keeping our distinctive culture very much alive.”
Dr Brian McConnell
Founder of Hydrock