Apax Partners Acquires Stake in Supply Chain Expert Sedex

Apax, a private equity investor, has agreed to acquire a controlling stake in Sedex, a specialist in sustainable supply chains. The undisclosed investment will help the company scale its platform and assessment capabilities, giving procurement teams greater visibility and more effective risk management across supplier networks.

Regulators, investors and consumers are increasing scrutiny of supply chains. Gaining clear insight across all tiers could mean procurement functions need stronger tools to manage compliance and reputation risk.

Once the deal is completed, Sedex Holdings, the current major shareholder, will retain a minority stake under the new name SHL Membership. The transaction is subject to customary closing conditions.

Platform expansion for procurement

Sedex will use the investment to increase its presence in core fast-moving consumer goods and retail markets. The company also plans to expand into new sectors and regions, broadening its product to address more risk factors and enhancing audit intelligence.

"Sedex has developed a uniquely powerful offering that equips companies around the world with the tools to manage risk, demonstrate improvement and drive responsible practices across the tiers, regions and facilities of complex supply chains," says Jon Hancock, Chief Executive Officer of Sedex.

"This investment enables us to further build on that foundation, strengthening our strategic partnership with customers, deepening our data capabilities and expanding our global reach, so we can better support customers in delivering responsible, resilient supply chains at scale."

Sedex aims to simplify compliance, enhance sustainability and reduce supply chain risk. As a trusted advisor to major brands such as Nestle, Unilever and KFC, it supports some of the world's largest companies.

Procurement risk management tools

The firm helps clients gain insight into supply chain performance and mitigate risks. It supports procurement functions by clarifying legislation, reducing labour and audit costs and preventing sustainability issues from affecting operations.

Sedex also measures sustainability performance to help companies reach their goals and increase transparency. This could build trust between suppliers and procurement teams at major corporations.

"Sedex helps make supply chains more ethical, transparent and safe for the workers within them," says Anders Meyerhoff, Partner, and Thomas Crewe, Principal at Apax.

"That mission sits at the heart of why this is so compelling to us, and we see a genuine opportunity to deliver both strong returns and measurable, lasting impact."

Investor transition and growth

The company's existing minority investor, LDC, will exit. According to Sedex, LDC's 2023 investment helped the company evolve its data platform, assessment tools and other solutions, supporting a more than doubling of revenue from 2022 to 2025.

"Sedex's journey over the past three years has been exceptional," says Dan Gluckman, Investment Director at LDC.

"Jon and his team have built a genuinely market-leading platform underpinned by unmatched site-level data, while expanding their global footprint and proving the commercial viability of supply chain risk management at scale."

SHLM will maintain its mission to improve labour, environmental and corporate responsibility practices in supply chains. It will use net proceeds to enhance global supply chain conditions, establish a charitable trust for targeted philanthropic investments and actively consult with members to guide its activities.

"We're proud to have backed management through this period of significant growth and innovation, and wish the business all the best in its new partnership with Apax."