Charterhouse in deal to buy ERM stake

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The private equity group Charterhouse Capital has agreed to buy a majority stake in Environmental Resources Management (ERM) in a deal valuing the environmental consultancy at around £585m.

Charterhouse will buy a 65 per cent stake as part of a management buyout from rival private equity firm Bridgepoint. The remainder of the business, which counts the supermarket group Tesco as one of its clients in the UK, will be owned by the company's 440 partners, including the senior management team.

ERM chief executive John Alexander welcomed the deal, saying: "We are pleased that Charterhouse shares our vision for the future growth of this company as we enter an exciting new stage of our development."

He added that ERM had completed "an outstanding year", with $483m in net revenues, up 12 per cent in year on year terms.

Charterhouse senior partner Stuart Simpson said the firm had followed ERM's progress "for a number of years," adding: "The company has grown to a size and leading market position that makes this the ideal time for Charterhouse to make an investment in the significant growth potential of this world-class business."