Platinum Equity has acquired a majority interest in ground engineering firm Grupo Terratest.
Financial terms of the transaction have not been disclosed.
Headquartered in Madrid and providing services around the world, Terratest is a specialised international contractor providing foundation work, ground improvement and micro-tunnelling services for large-scale infrastructure projects and industrial, commercial and residential construction.
Platinum Equity is a global private equity firm currently investing from a USD3.75 billion buyout fund focused on acquiring businesses that can benefit from the firm's operational expertise.
"Terratest is a leader in its industry with a well-recognised brand, strong management, talented employees and differentiated technologies," says Platinum Equity partner Jacob Kotzubei, who leads the team that executed the investment.
Enrique Torres, a 28-year veteran of Terratest who has been CEO since 2010, will continue to lead the company under Platinum Equity's ownership.
"Platinum Equity's investment is great news for our business. We now have strong financial backing and additional strategic and operational resources to help us grow," says Torres. "We have an expanding backlog of new business and all the tools we need to maximise our potential."
Platinum Equity worked closely with Terratest and its lending syndicate to develop and execute a recapitalisation plan that deleveraged the business and resulted in Platinum Equity becoming majority owner.
"We developed a transaction that provided a solution for the lenders, a healthy balance sheet for the company, and an opportunity for Platinum Equity to create value through growth and enhanced operational performance," says Kotzubei. "With the recapitalisation complete, Terratest can continue to focus on providing the world-class engineering services it is known for to a global customer base."
Under Torres' leadership, Terratest has diversified in recent years beyond Spain and today also does business throughout Europe, Latin America, Africa and the Middle East.
