Inspirit Capital backs Lloyd’s Register Group’s Energy business

Complex corporate carve-out completed by the UK-based investor

Wednesday 7 October 2020: Inspirit Capital is pleased to announce that it has entered into a definitive agreement to acquire the Energy division of Lloyd’s Register Group (“LR”), a global professional services organisation. This complex corporate carve-out is expected to complete later this month.

Headquartered in the UK, the Energy division encompasses a global engineering consulting business that offers specialist technical, regulatory and operational expertise across complex industrial assets, energy assets, the energy transition and rail infrastructure. The business posted revenues of approximately GBP 115 million in the previous financial year and has a global footprint, with a number of key operating hubs across North America, Europe, Middle East, Asia and Australia. The deal will create a new standalone engineering and technical consultancy that is well-capitalised and able to take advantage of market opportunities in the rapidly changing energy sector, and position itself for further industry diversification.

London-based Inspirit focuses on acquiring and transforming UK-headquartered businesses where there is strong potential to build long-term value for all stakeholders. Inspirit was advised on the transaction by Mayer Brown International.

Will Stamp, founding Partner at Inspirit Capital said: “The acquisition of LR’s Energy division is a corporate carve-out across multiple geographies and demonstrates Inspirit’s capacity to undertake transactions with high complexity in short timescales. We are backing a world-class team and look forward to building a valuable standalone business in a market undergoing dramatic change.”

Albert Farrant, founding Partner at Inspirit Capital, said: “This is a challenging time for many businesses who have been buffeted by market headwinds, political uncertainty and a global pandemic. We aim to use our capital and expertise to reinvigorate and stabilise UK-headquartered businesses that are no longer core to their parent company’s strategic objectives, whilst providing them an entrepreneurial platform for sustainable growth.”

Commenting on the deal, LR’s Chief Executive Officer, Alastair Marsh said: “Our Board has determined that this transaction is the best course of action to realise the long-term potential of our Energy business and aligns with our future strategic direction.”

David Clark, LR’s Energy Director, who will lead the new company, said: “This deal provides us with an experienced partner to build on our existing track record and unlock our growth potential as a standalone business.  We look forward to working with Inspirit to take our business to the next level.”

Inspirit’s founders combine 25 years of experience in executing corporate carve-outs and other complex investments. Inspirit aims to drive long-term value creation across a range of industry sectors, primarily through buy-and-build and operational transformation strategies.