SOCOTEC Group makes its 3rd acquisition in the Netherlands by signing with CAG Group
The SOCOTEC Group, an independent trusted third party, working in 25 countries, has significantly strengthened its presence in the Netherlands with its third acquisition within a year, which now represents €45m in total turnover.
- This summer, SOCOTEC acquired CAG Group, a company that has been active for over 25 years in the quality management of drinking water, as well as in the energy optimization and safety of buildings,
- Based in Reeuwijk (between Rotterdam and Utrecht), the company generates a turnover of €22m and employs over 170 engineers and technicians providing expertise in all sectors in the Netherlands particularly for the central government,
- The SOCOTEC Group is now one of the leaders in its sector in this important European territory which must overcome important energy transition or water management challenges given its specific geography and topography,
- The SOCOTEC Group has now 7 major platforms to underpin its growth: France, UK, USA, Germany, the Netherlands, Italy and Spain.
CAG, headquartered in Reeuwijk, is an independent and leading TIC company in the Netherlands with a focus on safe and sustainable buildings. CAG Group has achieved a turnover of €22m in 2021 in the quality management, testing and inspection of drinking water, its historical business (71% of the activity). CAG is a one-stop-shop in the Water safety market and provides a comprehensive range of services in the Energy optimization and Building safety markets to fully unburden clients. CAG has a robust client base in the Water safety market that consists of over 400 clients in a variety of industries. CAG has increasingly focused on larger clients, such as governmental agencies, healthcare institutions and housing corporations.
Dutch legislation on water quality has been tightened up considerably in recent years, particularly with regard to legionella. CAG is one of the national leaders in the verification of compliance with these regulations and has all the necessary accreditations and its own laboratory, constituting high barriers to entry.
In the water regulatory compliance market, the company has a unique combination of testing and inspection services which echoes with the services developed by SOCOTEC in the UK in the water sector. In the emerging energy efficiency and building safety market, including energy efficiency certification and labelling, CAG is growing rapidly with property owners and managers as a result of increasing legislation in the energy performance of buildings and their resilience, in a country which has set itself the goal of achieving carbon neutrality by 2050 and being amongst the European leaders of the circular economy.
For Coen Piccardt Brouwer, CEO of CAG Group:
"The services that we offer already exist at SOCOTEC in other geographies. We will therefore be able to benefit from a broader network that will be positive for our clients and employees. In addition, the positioning of the other group's subsidiaries in the Netherlands is complementary to our own and opens up new possibilities for our clients and for us. Finally, our desire to further develop training, embodied by the CAG Academy, which trains recognized experts in their field, truly echoes the SOCOTEC Group's "employee value proposition", based, in particular on a policy of developing and sharing technical skills. Together with Socotec, we will continue to fulfill our mission: A safe, healthy and sustainable working and living environment for everyone.”
Paul Vermaat, founder of Gate Invest, the majority shareholder of CAG Group:
"We are proud to have found an international strategic partner for CAG, which will not only allow CAG to continue its growth but also provides a safe home to the organization and its people. Together with the management, we have significantly grown the business over the last five years, both organically as well as through four add-on acquisitions. This exit is the first one for Gate and shows why we started in the first place: to support entrepreneurs, management teams and organizations towards their next growth phase.”