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CET Group
Overview
In October 2004, Sand Aire Private Equity (acquired by Dunedin in 2005) backed the management buyout of CET Group, the UK market leader and specialist in subsidence-related site investigations, drains surveys and associated building repairs. Sand Aire invested £5m for a majority stake in CET Group.
Deal Features
Sand Aire provided £5m, which enabled CET Group's founder shareholders to release equity whilst providing incentives for the management buyout team, led by Bob Blunden. Sand Aire partnered with HSBC which provided a £7.5m banking facility for the deal. Management rolled over a significant proportion of their equity into the deal.
In early 2006, Dunedin supported the bolt-on acquisition of Safehouse UK Limited, a nationwide building repair network which also manages claims on behalf of insurers. Under the branding Safehouse, the company is successfully growing its claims management offering and has contracts with important insurance providers.
Business Description
Working with loss adjusters and their insurance clients, CET provides consistently high service and reporting standards across the UK. This investment enables CET to explore further growth into subsidence related building repair; with the objective of becoming a one-stop-shop for subsidence investigation, mitigation and repair. The group is also a market leader in materials testing for civil engineering and highways contractors. The acquisition of Safehouse positions the company as a provider of outsourced claims handling and management.
The prospects for the company are promising on two fronts. The company's core subsidence business is weather driven with global warming, and the prospect of hotter, drier summers and wetter winters, CET is well placed as subsidence becomes an increasing concern for homeowners and insurers alike. The company's Safehouse branded building repair network selects best of breed contractors based on systems that monitor cost and service criteria. It is becoming recognized in its marketplace as the outsourced provider of choice.
CET's perspective
"The team were obviously quick to understand our business at the time of the deal, but I think where they've really made a difference is post-deal. The bolt-on acquisition of Safehouse just six months after completion has now become an integral piece of our growth plans. Dunedin were quick to grasp this and worked both smart and hard to ensure the deal came our way" Bob Blunden, Chief Executive, CET
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