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

Clearwater International 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.

The Clearwater International team consisted of Partner Joe Dyke, Associate Director Hertej Rattan and Senior Associate Ben Crowe.

Phil Coles, Chief Executive, CTS said: “It was a pleasure to work with Clearwater International 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.”

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. The Clearwater International 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.”