Dunedin backed CET, which supplies specialist outsourced services to the construction and insurance sectors, today announced that it has acquired Doncaster based materials testing company, Construction Testing Solutions ("CTS"), in a transaction valued at £3m. This acquisition further cements CET’s position as a leading UKAS accredited testing and outsourcing powerhouse in the UK.
The acquisition, funded by the company’s own cashflow, will enable CET to expand its geographical reach across the UK. With testing centres also located in the Midlands, Scotland and the South, it can now provide clients from the construction sector, such as Aggregate Industries and VolkerWessels UK, with a nationwide infrastructure outsourcing service. High profile construction projects in which CET is also involved over the long term include ongoing upgrades to national rail infrastructure (e.g. Crossrail), ports (e.g. DP World) and airports (e.g. Heathrow).
The acquisition also forms part of an active expansion programme that has seen CET achieve year on year growth, with both revenues and EBITDA increasing by 75% over the past 3 years. In addition to pursuing acquisitive growth, the company has also invested heavily in IT and now offers clients a paperless, technology enabled outsourcing proposition that is unrivalled in the market.
By acquiring Doncaster based CTS, CET will be ideally placed to capitalise on increasing construction activity in the North, which is set to rise over the next decade as a result of the National Infrastructure Plan, the Northern Powerhouse Project and the Transport for the North initiative. The UK Government has committed £13bn of funding to transform transport infrastructure in the North over the next five years.
Bob Blunden, CEO of CET, commented: “The acquisition of CTS is a significant development for CET as it enables us to establish a strong foothold in the North – both to capitalise on the significant construction opportunities that exist in the region but also to strengthen the nationwide service that we are increasingly offering to our national clients. It is also an opportunity for us to back CTS’s experienced management team led by Jon Hardcastle and Kevin Tonge, and we look forward to working with them to expand their materials testing capabilities.”
David Williams, Senior Partner at Dunedin and Chairman of CET, commented: “The last three years have seen CET grow substantially in terms of its revenue, profitability and market share, as well as the breadth and quality of service that it offers clients. This is to the great credit of the team, led by Bob Blunden. This latest acquisition is an important element of continuing and consolidating CET’s year on year growth. The business is now extremely well positioned to capitalise on the major drive to improve Northern infrastructure over the next five to ten years.”
Dunedin backed the management buyout of CET Group in 2005. This is the twelfth acquisition to be completed by a Dunedin backed company in the last sixteen months.