Gordons advises on the sale of water monitoring ppecialist IETG and surveyors 40SEVEN to SOCOTEC UK
Thursday 2nd November 2023
SOCOTEC UK, a market leader in testing, inspection, and certification (TIC) services for the construction and infrastructure sectors, has acquired IETG, specialists in flow level, temperature, and water quality monitoring, and 40SEVEN, renowned for their industry leading expertise in land and utility surveying services.
This strategic acquisition, with a combined workforce of 160 professionals and a revenue of £13m, significantly enhances SOCOTEC UK’s service portfolio and extends its geographic reach. The total turnover of SOCOTEC UK now stands at £200m.
The shareholders of Leeds-based IETG and 40SEVEN were advised by a team from Gordons led by corporate partner, Jonathan Asquez; solicitor, Lucy Leyland and chartered legal executive, Lauren Wurzal. Additional advice on the acquisition was provided by employment solicitor, Oliver Allanach and property solicitor, Rebecca D’Arcy.
Corporate financial advisers Dow Schofield Watts and Tax Advisory Partnership also advised on the acquisition.
With a strong commitment to helping customers reduce their environmental impact and adapt their built assets to address climate change challenges, SOCOTEC continues to lead the way in environmental stewardship.
In 2023, the UK Government issued the first revision of its 25 Year Environment Plan, placing a critical focus on mitigating impacts on the water environment. Water companies are now tasked with meeting stringent targets and commitments through enhanced transparency and monitoring mechanisms outlined in the Environment Act.
IETG, experts in planning, monitoring, and measuring, are uniquely positioned to support water companies and wider stakeholders across the UK in achieving regulatory compliance. Their services, including flow surveys, water quality monitoring and sampling, pollution alarms, level monitoring, temperature and hydrogen sulphide monitoring, are instrumental in ensuring adherence to environmental regulations.
Furthermore, 40SEVEN’s specialist surveying services, encompassing topographical and measured building surveys, as well as underground utility and gas hazard surveying, aligns seamlessly with SOCOTEC’s existing surveying and monitoring capabilities.
This acquisition further bolsters SOCOTEC’s extensive portfolio, providing clients with comprehensive in-house solutions throughout the asset lifecycle.
Commenting on the acquisition, Nicolas Detchepare, CEO of SOCOTEC UK, said: “The acquisitions of IETG and 40SEVEN reinforce and diversify our existing environmental division. With the addition of remote monitoring capabilities, we are now the leading provider in the UK, supporting our clients in complying with the rigorous legislation established by the Environmental Act. This acquisition solidifies SOCOTEC’s position as a leader in remote monitoring and advanced geospatial solutions within Infrastructure, Utilities, Environment, and Construction. The acquisition supports our ambition to become the leading integrated player in the UK, helping businesses mitigate environmental impacts and build a more resilient, sustainable future.”
Ian Edwards, managing director, IETG and 40SEVEN said: “We can see fantastic opportunities ahead for IETG and 40Seven and after 7 years of investment support from Bentley O-S, at this crucial time, we needed strategic investment and size, matched by a similar culture and drive to achieve our goals and continued growth strategy. SOCOTEC provides the ideal platform and seamless transition, whilst bringing a strategic mindset, strong covenant, credibility, financial strength, and support, and providing future opportunities for our staff to thrive and develop. We are excited and looking forward to the next stage of our journey within the SOCOTEC Group.”
Herve Montjotin, CEO, SOCOTEC Group continued: “There is a perfect operational and cultural fit between IETG / 40SEVEN and SOCOTEC UK. With this seasoned and cohesive team joining SOCOTEC, we will enlarge our service offering especially in the environmental field and confirm our leadership in the UK.”
In 2016, Gordons advised on the acquisition of IETG and 40SEVEN from its US parent company, IDEX Corporation.
Gordons’ corporate partner, Jonathan Asquez, commented: “We are pleased to have advised the shareholders of IETG and 40SEVEN on their acquisition by SOCOTEC.
“Since 2016, IETG and 40SEVEN have worked tirelessly at being leaders in their field. Becoming part of SOCOTEC, and combining their impressive portfolios, ensures they can continue in their vital mission.”
SOCOTEC UK’s announcement press release can be found here.
You can learn more about Gordons’ corporate, M&A and banking expertise here.