Business Growth Fund (BGF) has finalized its lucrative exit from Hydrock, a distinguished engineering, energy, and sustainability consultancy after aiding its growth and expansion. Hydrock has become part of Stantec, an internationally recognized firm in sustainable design and engineering. The retirement of Hydrock’s CEO, Brian McConnell, coincides with this acquisition. Hydrock’s headquarters are in Bristol and it operates with over 950 employees in 22 UK offices, serving various sectors such as education, healthcare, and residential. BGF’s investment in Hydrock began in 2018, contributing £5.6 million, furthering Hydrock’s organic growth and funding the acquisition of seven complementary businesses. Hydrock has achieved significant operational scale, diversified into new geographies, and doubled its revenues. BGF realized a 6x return and a 40% IRR from the deal. Hydrock, acclaimed as one of the UK’s 100 Best Large Companies to Work For, has established a reputation for its sustainable approaches to infrastructure projects. Dr. McConnell lauded BGF’s role throughout the company’s expansion and maintaining its unique culture. BGF’s investment team included Paul Oldham, Alex Garfitt, and James Skade. Oldham praised Hydrock’s synergy with BGF’s values and its future potential. Dr. Scott Elliott is set to steer Hydrock’s integration with Stantec. The transaction was facilitated by advisors KPMG for financial aspects and Freeths for legal matters.

Private Equity, Engineering Consultancy, Sustainable Design and Engineering,United Kingdom, Canada, United States

BGF completes successful exit of Hydrock to Stantec