PORTFOLIO — Business SERVICES

CTS

Construction Testing Solutions (CTS) is a leading provider of on-site and laboratory testing, geo-environmental and structural assessment services to the UK Infrastructure and Construction industry. The business operates from a network of ten laboratories and six geo-technical and geo-environmental consulting offices across the UK.

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Key Facts

Initial investment: 23/11/2018

Sector – Business Services

Fund — Buyout Fund III

Status — Realised

Investment highlights

  • Introduced a new managing director with strong TIC sector experience.
  • Supported with sourcing and execution of nine acquisitions to date broadening CTS’s geographical coverage.
  • Rolled out and improved existing field and lab workflow system across the business.
  • Undertook lean process review to enhance efficiency of laboratory services.
  • Introduced a new financial director with private equity experience to support transition to standalone business.
  • At the time of Palatine’s investment, the business was part of a larger group which included CET. We supported management in formally separating the two businesses to enable us to execute two distinct strategic growth and exit plans.
  • Exited the business with a return of 5.8x

Partnership Motivation

When we met the team in 2018, we were impressed with how the company had developed under Peter’s stewardship. We saw a great opportunity to grow both sides of the business through a buy and build strategy and accelerate the investment programme through continued technological innovation.

“Over the last four years of partnership, Palatine has proven itself to be an outstanding and highly supportive investor. Together we have achieved remarkable growth, scaled the business significantly and enhanced our proposition to customers. All of this has paved the way for further long term success as we become part of a larger, ambitious, international group with the backing of Oakley Capital.”

Peter Eglinton
Non Executive Director, CTS

Investment Team