Iain MacGregor, CEO of Envoy and RSE

RSE was founded as a family business in 1982 by Allan Dallas. In 2019, Envoy Capital and management led a buyout of RSE from Global Energy Group, with an ambition to develop and prove new ways to build water treatment assets for the UK market.

Since then, through a combination of organic and acquisitive growth, revenues have grown from £60m to over £200m and RSE now employs over 1,500 staff across the UK.

Amar Shanghavi, investment director at MML, said: “We have built a strong relationship with Iain, Allan and the team over two years, which has demonstrated our strong alignment on strategy and values, particularly on building sustainable businesses.

“The water sector is experiencing significant change and RSE is well positioned to help the industry innovate to deliver better quality water for consumers and the environment. This is an incredible team and we are fortunate to be partnering with them at this stage of their journey.”

Iain MacGregor, CEO of Envoy and RSE, added: “The investment by MML marks a key milestone in the RSE growth story, providing new access to capital and confidence to pursue our ambitious plans.

“Envoy and management will continue to be majority shareholders in RSE, backed now by a private equity firm with international experience and reach.

“Our decision to partner with MML was founded on shared values and a goal to change the way water companies and industrial water users enhance their treatment processes.”

The MML deal team comprised Richard Mayers, Amar Shanghavi, Christian Brown and James Church.

MML was advised by DC Advisory’s Gary Hancock, Chris Gornall, Teddy Wadsworth and Aiman Daud; Pinsent Masons’ Edward Stead, Peter Morley, Ben Elliott, Jade Coombs-Goodfellow, Vanessa Heap and Kirstyn Gleeson; Teneo’s Nick Daley; FRP Advisory’s Richard Goodall; Eight Advisory’s Caley Mogg; Sustainable Advantage’s Sharon Dekker; Howden’s Hugh Willis; Equator’s Chris Gauld; and Confidas People’s Bruce Douglas.

RSE was advised by Envoy Group’s Andrew Matheson, Stronachs’ Neil Forbes and James Muir, and Brodies’ Neal Richardson and Nicola Watson.

The transaction was supported by HSBC.