Palatine agrees sale of CET Group’s specialist claims management division
We have made a successful partial exit from CET Group with the sale of its tech-enabled insurance claims management division to HomeServe plc for £53m.
Based in Castle Donington, CET is a leading provider of outsourced home emergency, drainage and subsidence services to one in eight UK households.
Since our initial investment in November 2018, revenues have grown by almost £12m to £32m and EBITDA has more than doubled. Its workforce has increased significantly too, rising from 190 to more than 300 in the last 12 months.
Our team has worked closely with CET’s management team to support investment in the company’s technology platform, Simplifi which has improved the customer experience and generated new sales. Reflecting this and other value-enhancing initiatives CET has grown the number of claims it handles by 40% since our investment.
We also supported the company’s rapid switch to 100% home working for contact centre staff during the COVID-19 pandemic. These flexible working practices have now been adopted as standard, improving the ability to attract and retain quality call handlers and enhancing the customer journey.
CET has also benefited from our decade-long commitment and expertise in ESG, and the company has made significant strides in promoting diversity and inclusion and won several awards for its work in improving employee mental health and wellbeing.
The exit has generated an excellent return for us, which remains invested in CTS – Construction Testing Solutions, formerly CET Group’s infrastructure testing division.
Richard Thomas, of Palatine commented: “The CET team have done an excellent job in growing the business through digitalisation, employee engagement and operational improvement. It’s been a pleasure partnering with the team and we wish them all the best on the next phase of their growth with Homeserve.
“We remain invested in CTS and are continuing to support its buy and build strategy.”
Ross Clemmow, Chief Executive, EMEA, HomeServe, said: “CET has a leading market position and provides home emergency assistance for one in eight UK households. We are very impressed by the business, its customer partnerships and its digital capabilities, and there are exciting opportunities to develop the plumbing, heating and electrics services which are core to both of our operations.”
Deloitte FIG Corporate Finance acted as our exclusive financial adviser and Browne Jacobson acted as their legal adviser. PwC provided commercial and financial due diligence.