Information on the Target

Gate Invest, the investment fund of the Vermaat family, has finalized its first investment with the sale of CAG Groep. CAG is a market leader in legionella prevention and has been active in drinking water quality management, energy optimization, and building safety for over 25 years. The entire stake has been sold to the French SOCOTEC Group, providing CAG with a financially robust partner with extensive experience in the Testing, Inspection, Certification (TIC) market to support its future growth.

Based in Reeuwijk, CAG is an independent and leading TIC and engineering company offering a comprehensive range of services in water quality, energy optimization, safety, and sustainability. Employing more than 170 engineers and technicians, the company delivers its expertise throughout the Netherlands. SOCOTEC is a prominent TIC service provider in the construction and infrastructure sectors across Europe and the United States, boasting over 10,000 colleagues and experts worldwide.

Industry Overview in the Netherlands

The Dutch TIC (Testing, Inspection, Certification) industry has seen significant growth due to increasing regulatory requirements and rising public awareness of safety and quality standards. With the ongoing emphasis on environmental concerns, companies are investing heavily in TIC services to ensure compliance and improve operational efficiency. As a result, the demand for specialists in legionella prevention and building safety is at an all-time high.

The Netherlands is committed to sustainable development, which has driven growth within the energy optimization and environmental services sectors. Local policies aimed at reducing carbon emissions and promoting green building practices are influencing the demand for TIC services, empowering companies like CAG to expand their service offerings and enter new markets.

Moreover, the competition within the TIC industry remains fierce, with several domestic and international players vying for market share. To remain competitive, companies are increasingly turning to partnerships and acquisitions, leading to a trend of consolidation within the sector.

This evolving landscape presents opportunities for companies positioned to capitalize on technological advancements and shifts in regulatory frameworks. The involvement of experienced investors such as SOCOTEC signals confidence in the long-term growth potential of the TIC market in the Netherlands.

The Rationale Behind the Deal

The acquisition of CAG by SOCOTEC is strategically significant, as it strengthens SOCOTEC's market position in the Netherlands and enhances its competitive edge in the construction and infrastructure sectors. This partnership stands to leverage CAG's established market presence and expertise in environmental and energy-related services to pursue further growth opportunities.

Moreover, the collaboration with Gate Invest has provided CAG with a solid foundation for expansion, as evidenced by its successful buy-and-build strategy, which has significantly enhanced its service portfolio and market reach. The synergy between SOCOTEC's resources and CAG's capabilities positions the combined entity for sustainable growth.

Information About the Investor

Gate Invest is a prominent investment fund initiated by entrepreneur Paul Vermaat, dedicated to supporting businesses through strategic partnerships and management teams. With a keen focus on value addition through diverse expertise, Gate Invest seeks to stimulate the growth of its portfolio companies in various sectors.

For years, Gate partnered with CAG to cultivate a solid and mature organization while executing growth strategies that transformed CAG into a robust player in the TIC landscape. This pivotal sale to SOCOTEC reflects Gate Invest's objective of propelling companies toward their next growth phase.

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The acquisition of CAG Groep by SOCOTEC has the potential to be a highly beneficial investment for both parties involved. For SOCOTEC, the addition of CAG strengthens its footprint in the Netherlands, paving the way for broader market penetration in the TIC sector. With considerable demand for quality inspection and environmental services, CAG is well-positioned to leverage SOCOTEC's international presence and resources to achieve synergies and enhance service delivery.

For CAG, this sale marks a new chapter of growth backed by a financially strong partner. The industry requires continuous evolution, and SOCOTEC's extensive capabilities in TIC can catalyze CAG's expansion into new regions and service sectors, particularly in response to rising energy and environmental challenges.

Given CAG’s previous success in executing a strategic buy-and-build program, the trajectory for future growth under SOCOTEC's umbrella appears promising. The combination of enhanced capabilities through SOCOTEC's resources and CAG’s operational experience sets the stage for sustainable growth in the TIC domain.

In conclusion, this acquisition not only aligns with the growing needs within the TIC industry but also positions both SOCOTEC and CAG for success, making this deal a noteworthy step in the evolving Dutch market.

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