Private equity firm buys majority stake in assurance company

Palatine Private Equity has completed the secondary buyout of CET UK, a specialist provider of infrastructure and property assurance services.

The Birmingham office of the private equity firm led on the deal, which sees it take a further stake in CET UK and results in the exit of The Equity Harvest Fund.

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

The investment was made from Palatine’s Fund III, which closed at £220m in June 2015. The fund typically targets mid-market companies with investments ranging from £10m-£30m.

“The business has a number of exciting opportunities across both of its core operations,” said Richard Thomas, head of Midlands at Palatine Private Equity.

“Part of these growth plans will include a buy and build strategy across both sides of the business.”

CET UK is based in Castle Donington and employs more than 470 staff. Palatine has backed the incumbent management team, which is headed by chief executive 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.”

The deal was supported by debt and working capital facilities from Clydesdale and Yorkshire Bank Acquisition Finance and Beechbook Capital.

Palatine was advised by Midlands based Alantra and Browne Jacobson, with due diligence services provided by Grant Thornton, CIL and JLT. The vendors were advised by Clearwater International and Gateley PLC, and Clydesdale and Yorkshire Bank was advised by Pinsent Masons.