CGE Partners Acquires Enhesa To Fuel Ambitions For Global Growth And Expansion
EHS regulatory content provider, Enhesa, announced on July 20th that it has agreed to be acquired by CGE Partners, a London-headquartered private equity fund with €440 million under management. With a focus on Western and Northern Europe, CGE aims to invest in high margin businesses with strong global growth potential.
Founded in Brussels, Belgium, in 1989, Enhesa has grown to become a top tier EHS regulatory content provider covering more than 290 jurisdictions and with offices in the US, Europe, Canada, China, and Japan. Enhesa’s EHS Compliance Intelligence, Regulatory Forecaster, Product Regulatory Compliance, and Expert Support Services solutions are currently accessed by well over 500 clients including more than a quarter of Fortune 100 firms. The vendor has also established a formidable partners ecosystem which includes EHS software providers Cority, Enablon, Gensuite, Intelex, Lifeguard Solutions, ProcessMAP, Quentic, UL, and VelocityEHS as well as EHS services firms Arcadis, Golder and SGS.
This acquisition by CGE is the latest in a multi-year trend of EHS regulatory content providers seeking to consolidate and strengthen their market position. Verisk 3E, for example, acquired SAP’s EHS regulatory content and EHS regulatory documentation teams and data assets in first-half 2019 to achieve coverage of more than 2,000 global chemical regulations across 500,000-plus substances.
The decision by CGE Partners to invest in Enhesa reflects on both the solidity as well as the continued growth opportunities for EHS regulatory content specialists. Verdantix assesses there are several strategic options for Enhesa. First, the adoption of EHS software – and associated regulatory content expertise – continues to have substantial room for growth among mid-market segments where penetration rates remain low. Second, a CGE-backed Enhesa may also seek growth by acquisition. Various EHS content specialists have established steady revenue streams catering to niche, regional EHS regulations which may further strengthen Enhesa’s coverage if acquired. Third, EHS regulatory content specialists have also sought to compete more directly in the EHS software markets. Red-on-line, for example, is an EHS regulatory content specialist with coverage across 80-plus countries globally who launched their own EHS software solutions from 2017 onwards. As a fourth option, Enhesa could also look to strengthen its chemicals compliance content business and bolster coverage for product-level regulations such as the EU SCIP or EU poison center notifications requirements.
To learn more about the EHS information management market landscape, visit the Verdantix EHS research portal.