Clearwater advises Palatine on its sale of CTS Group to Oakley Capital

Transaction

Palatine sold CTS Group to Oakley Capital

Sell-side

Undisclosed

Role

Adviser to Palatine on the sale of CTS Group to Oakley Capital

Sector

Business Services

Region

United Kingdom

Clearwater has advised Palatine on the sale of CTS Group, the fast-growing provider of testing, inspection and geoengineering consulting services to the construction and infrastructure sectors.

Leicestershire-headquartered CTS has been acquired by Oakley Capital, the pan-European private equity investor.

Since its initial investment in 2018, Palatine has grown CTS into a leading business in the UK. Revenues have more than doubled over the last three years, through Palatine’s investment in digital transformation, talent acquisition and a highly successful buy and build strategy. With Palatine’s backing, CTS has made nine acquisitions adding complementary services and geographic scale to its offering.

CTS has also benefited from Palatine’s industry-leading approach to ESG strategy, which has seen the business create an in-house ESG coordinator position and realise significant reductions in its carbon footprint through fleet electrification and digitisation initiatives.

Earlier this year, Clearwater’s Debt Advisory advised Palatine and CTS on a multi-million pound refinancing transaction with European credit specialist Kartesia to support the business’ growth plans.

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We have enjoyed a highly collaborative, productive and successful partnership with Phil and his team, based on a shared early belief in CTS’ potential to become a nationally-leading force in its market. This excellent outcome is a major milestone in what we are sure will continue to be a remarkable growth story for CTS and its new partners. In parallel with the acquisition of CTS, Oakley Capital has invested in Phenna Group, a global Testing, Inspection, Certification, and Compliance (“TICC”) sector business. CTS will become part of Phenna Group upon completion of both deals. The existing CTS management team will continue to lead the business within the wider group.
Tony Dickin, Partner, Palatine

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.
Phil Coles, CEO, CTS Group

It was a pleasure to advise Palatine in this transaction. Palatine has been a strong investor in the business over the last couple of years and has backed CTS to reach some fantastic results. We are looking forward to seeing the business continue with its growth plans and would like to wish Tony, Phil and the rest of the teams all the best.
Sarah Taylor, Partner, Clearwater