Private equity firm buys majority stake in assurance company

CET UK, the Castle Donington provider of infrastructure and property assurance services, has been through a secondary buyout.

Private equity house Palatine has taken a further stake in the firm, which employs over 470 staff and was established in 1989, in a deal advised upon by Alantra.

The deal was supported by debt and working capital facilities from Clydesdale and Yorkshire Bank Acquisition Finance and Beechbook Capital. The deal will see The Equity Harvest Fund exit the business.

The investment from Palatine will allow CET’s property assurance business to develop new technology that it says will streamline its claims management and investigation process.

The deal will see Palatine back the incumbent management team, which is headed by CEO, Peter Eglinton.

He said: “I am delighted that Palatine will be supporting the business and look forward to working with them in achieving our ambitious growth plans. We will continue to focus on delivering great services for our customers, investing in smart technology and in developing our team.”

Richard Thomas, head of Midlands at Palatine Private Equity, said:“The business has a number of exciting opportunities across both of its core operations. Under Peter’s stewardship, CET has developed immensely, and we are delighted to be supporting Peter and his team with their future growth plans. Part of these growth plans will include a buy and build strategy across both sides of the business”.

Simon Peacock, director at Alantra, who advised on the deal, said: “We are delighted to have supported Palatine on their investment in CET, an impressive business that has achieved significant growth over the last few years. CET is in a strong position to capitalise on the many opportunities that lie ahead through further investment in technology and in continuing its international buy and build growth strategy.”

Marcus Archer, partner and head of business services, at Clearwater International, which also advised on the deal, added:“This deal will enable CET to scale its operations further, building on the strong platform created by its experienced management team and technically skilled workforce. Both of the markets that the business operates in are set to grow, with government initiatives supporting investment in the infrastructure sector and the increasing public awareness of property assurance policies. We wish Peter and the team all the best for the future.”

Click here to sign up to receive our new South West business news...
Close