Investment type
- Carve out
HSL Compliance (HSL) is a market leading UK environmental testing, inspection, certification and compliance (TICC) company. It specialises in water hygiene, water treatment and other compliance activities.
Headquartered in Herefordshire and founded in 1976, the business operates nationwide with 19 offices across the UK and Ireland. It employs approximately 650 people and serves more than 370 customers across various private and public sectors, including food and beverage, manufacturing, facilities management, healthcare and education.
Backing an ambitious team
In May 2019, LDC invested £20m to back the carve-out of SGI Holdings Ltd (SGI Holdings) from global testing, inspection and certification group Kiwa. SGI Holdings comprised SGI Compliance and HSL Compliance.
In August 2023, SGI Holdings sold SGI Compliance, its continental European business, to CERTANIA. HSL Compliance remained separate from this transaction.
Led by CEO Gavin Hartley, HSL Compliance went on to deliver a growth strategy that focused on further investment in its portfolio of services and a targeted buy-and-build strategy to add complementary service lines in the UK.
Exceptional growth
During the six-year partnership with LDC, HSL quadrupled pro-forma revenues to £77m and doubled headcount to 650 employees. It established itself as a high-quality business capable of meeting the needs of nationally or regionally complex estates seeking a full-service provider for water hygiene and treatment services, alongside fire and air compliance services.
With LDC’s support and follow-on funding, HSL also delivered a successful M&A programme and completed 11 bolt-on acquisitions, significantly increasing the breadth of its UK coverage and client base.
With the support of LDC, we have established HSL as a market-leading TICC service provider in the UK. I’d like to take this opportunity to thank the LDC team for their unwavering support over the last few years.”
Continued support
LDC exited its investment in HSL Compliance to IK Partners in January 2025, reinvesting for a minority stake to support the continued growth of the business.