Current Investments

Transaction Summary

ONCAP created Englobe Corp. (“Englobe”) as a platform to execute on its investment thesis pertaining to environmental and engineering services consisting of the acquisitions of Environmental Management Solutions Inc., Biogénie S.R.D.C., Celtic Technologies, LVM Inc, Crandall Engineering Ltd., MLE and DST.

Business Description

Headquartered in Quebec City, Quebec, Englobe is a leading Canadian applied sciences services company that specializes in providing environmental engineering and remediation services, geotechnical engineering and inspection, material testing, building sciences and other specialty engineering and inspection services. With approximately 2,000 employees, Englobe offers cost-effective solutions to government, commercial and industrial clients in Canada, France and the United Kingdom.

Investment Thesis

The thesis underpinning Englobe is based on the increasing demand for environmental services stemming from society’s increasing environmental sensitivity as well as the growing need to redevelop infrastructure as well as other brownfield sites. Englobe also exhibits several attractive investment attributes, including: (i) strong cash flow profile;
(ii) difficult to replicate market position (through soil treatment, composting and material testing lab facilities, associated permits, operational know-how, treatment technologies and processes, and relationships with ultimate outlets for waste streams);
(iii) advantaged position in the highly fragmented environmental and geotechnical services sectors; (iv) significant organic growth potential through its participation in growing volumes of contaminated soils and organic waste being increasingly diverted from landfills; and (v) operating in a highly fragmented market for geotechnical services which should provide opportunities to consolidate smaller testing and inspection firms, particularly in Western Canada.

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