Clearwater advises Palatine and Construction Testing Solutions on refinancing to support growth

Transaction

Palatine and CTS raised debt finance from Kartesia

Refinancing

Undisclosed

Role

Adviser to Palatine and CTS on refinancing to support growth

Sector

Business Services

Region

United Kingdom

Clearwater has advised Palatine-backed Construction Testing Solutions (CTS), a provider of construction and infrastructure testing and consulting services, on a multi-million pound refinancing transaction with European credit specialist Kartesia.

Headquartered in Leicester, CTS offers a wide 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 (€47m) for the first time, while the business has also recently moved to a new head office, following its separation from sister company CET Group.

The new funding will support CTS to continue a successful growth strategy that has already seen it acquire five businesses, since it secured investment from Palatine’s Buyout Fund in 2018.

It was a pleasure to work with Clearwater to secure a great result for our business. The team understood our objectives and were able to negotiate a financing package to suit our needs. 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.
Phil Coles, Chief Executive, CTS

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. The Clearwater team were crucial in helping us get this transaction over the line. They were hands on and provided support every step of the way. We are pleased with the final outcome and look forward to supporting Phil and the management team and making continued progress in 2022.
Tom Hustler, Investment Manager at Palatine Private Equity

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.
Nick Holman, Director, Kartesia

We are delighted to have assisted Tom and the team on this refinancing transaction for CTS. The business already has a powerful growth strategy since Palatine’s investment and now funding from Kartesia will provide CTS with the firepower it needs to continue with this growth story. We would like to wish Palatine and CTS all the best with their plans.
Joe Dyke, Partner, Clearwater