PE Deals

Palatine exits CTS Group to Oakley Capital

The sale, along with that of CTS' insurance claims management division to HomeServe for £53 million in 2021, represents a 5.8x return for Palatine.

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  • CTS Group’s revenues have more than doubled in the last three years
  • CTS has made nine acquisitions since Palatine’s initial investment in 2018
  • Oakley Capital has invested in Phenna Group, of which CTS will become part 

Palatine has sold CTS Group to Oakley Capital after initially investing in the firm in 2018. CTS Group, headquartered in Leicester, is a UK-wide network of laboratories and offices, offering a range of construction testing, inspection and compliance services.

Oakley’s purchase of CTS Group follows its deal for Phenna Group, as reported by PE Hub Europe. Following the completion of both deals the acquisition will see CTS become part of Phenna Group, a Nottingham-based group of specialist businesses focused on the testing, inspection, certification and compliance sector. The existing CTS management team will continue to lead the business within the wider group.

CTS Group’s revenues more than doubled in the last three years. During the same period, Palatine supported CTS to make nine acquisitions, growing the company’s complementary services and scaring the business geographically.

“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,” said Tony Dickin, partner at Palatine.

Palatine is a Manchester-headquartered private equity and venture capital firm. It has two funds, Buyout and Impact, and was founded in 2005.

“Over the last four years of partnership, Palatine has proven itself to be an outstanding and highly supportive investor,” said Phil Coles, CEO of CTS Group. “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.”

Oakley Capital was founded in 2002 and is headquartered in London. It is a private equity firm that invests across three core sectors – technology, consumer, and education.