Construction Testing Solutions (CTS), the Palatine-backed provider of construction and infrastructure testing and consulting services, has completed a multi-million pound refinancing with European credit specialist Kartesia.
The new funding will support the Leicester-headquartered company to continue a growth strategy that has already seen it acquire five businesses since it secured investment from Palatine’s Buyout Fund in 2018.
CTS offers a range of construction testing services including materials testing, structure and pavement surveys and geotechnical and geo-environmental investigations. With support from Palatine, the UK mid-market private equity investor, it has grown to become a national network of 19 laboratories and offices, employing more than 600 skilled engineers and technicians.
In the last 12 months CTS’ revenues have passed £40m for the first time, while the business has also recently moved to a new head office, following its separation from sister company CET Group.
Chief Executive Phil Coles said: “The new funding from Kartesia will be key to delivering our strategic growth plan, giving us the firepower to make further acquisitions in the short and medium term, while also allowing us to invest in our people and technical capabilities.”
Nick Holman, director at Kartesia, said: “We are delighted to complete our second transaction with Palatine and support CTS; a resilient and critical service provider with an excellent track record in the UK market. Our capital will help the company continue its impressive growth story and fulfil its buy-and-build ambitions.”
Tom Hustler, investment manager at Palatine Private Equity, said: “This refinancing deal is an important step forward for CTS and will allow it to continue to add depth and scale to its capabilities in line with its strategic vision of becoming an industry-leading nationwide construction testing business.
“We are pleased to be supporting Phil and the management team and look forward to making continued progress in 2022.”
Since becoming part of Palatine’s portfolio CTS has acquired: Esseltest, Enverity (2019), Card Geotechnics Ltd (CGL) (2020), Nicholls Colton, (2021) and most recently Silkstone Environmental in August.
Palatine was advised by a team from Clearwater International.
