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Newcastle engineering consultancy acquires Birmingham firm

Newcastle-headquartered engineering consultancy Patrick Parsons has secured a multi-million-pound development capital investment to support its UK-wide expansion.

The business, which boasts more than 250 specialist engineers, provides design services across civil, structural, geo-environmental and M&E disciplines to blue-chip clients in the residential, commercial and infrastructure sectors.

Some of the firm’s most notable projects include consulting on restoration works at Durham Cathedral and developing the world’s first modular flat packed white water course in Glasgow.

Securing backing from mid-market private equity firm LDC, the company will use the capital to support its immediate acquisition of infrastructure engineering specialist THDA.

The Birmingham-based business specialises in the design of civil engineering infrastructure for development schemes such as major highways, roads, earthworks modelling and flood risk assessments, and will strengthen Patrick Parsons’ national capabilities in this market.

It follows a buy and build strategy that has seen the business complete six complementary acquisitions over the past five years, most recently London-based JSA in 2015, Guildford-based Stilwell in 2016 and Manchester-based BCM this year.

Since leading a management buyout in November 2007, Patrick Parsons has increased turnover from £1m in 2007 to £18m today; expanding the firm’s geographic footprint from one site in Newcastle to eight sites across the UK.

Peter Stienlet, Managing Director at Patrick Parsons, said: “We have grown significantly and this is undoubtedly down to the hard work and commitment of our people.

“We pride ourselves on having created a collaborative business culture that has a strong focus on the values of a family business and this has enabled us to continue to attract and retain the best talent, and continue to grow and expand.

“It was vital that we found an investment partner that understood both our vision for growth and the importance we place on this culture. In LDC we have a highly-experienced partner that is backing us to continue our growth journey, and helping us to invest in the future of our business.

“The acquisition of THDA is the next step on this journey and puts a marker in the sand for our commitment to the infrastructure sector. The move will allow us to enhance our presence in Birmingham and sees the firm establish itself as a fully multi-disciplinary practice.”

The deal was led by Ben Snow, Investment Director, and Zara Lane, Investment Origination, at LDC in Newcastle.

Robert Horvath will join the board of the business as Non-Executive Chairman. An engineer by trade, Robert has more than 25 years’ experience of supporting the growth of businesses across the construction and engineering sectors.

Ben Snow, Investment Director at LDC, said: “Patrick Parsons has an exceptionally strong management team that has successfully spearheaded the growth of the business, while retaining the values of a smaller sized firm.

“The acquisition of THDA is an exciting development for both businesses. It allows Patrick Parsons to further strengthen its service line and create more opportunities for both its employees and customers in a market that shows strong growth prospects as infrastructure investment continues to rise.”

Patrick Parsons were advised by Cavu Corporate Finance and Mincoffs Solicitors.

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