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Bridgepoint Sells ERM Stake to Charterhouse

Private equity firm Charterhouse has acquired a majority stake in environmental consultancy Environmental Resource Management from rival buyout shop Bridgepoint, Reuters reported. The deal is reportedly valued at roughly $950 million. Charterhouse will take a 65% stake in ERM.

(Reuters) – Buyout firm Bridgepoint [BRDG.UL] said it had sold a majority stake in environmental consultancy Environmental Resource Management (ERM) to rival Charterhouse [CHCAP.UL] in a deal that values the company at about $950 million.

Charterhouse is taking a 65 percent holding in ERM by backing a management buyout from Bridgepoint, the two private equity firms said on Sunday.

Under the deal, which preempts what bankers had expected to be a fiercely contested auction, ERM’s 440 partners will make a “substantial” reinvestment in the business.

ERM’s earnings before interest, taxes, depreciation and amortisation rose 18 percent to $76 million in its most recent financial year. (Reporting by Myles Neligan and Simon Meads; Editing by David Holmes)