A. SREENIVASA REDDY (ABU DHABI)
Abu Dhabi Investment Authority (ADIA) and Mubadala have joined Swedish private equity firm EQT in a 9.5 billion pounds takeover of UK-listed testing and certification company Intertek Group, according to a disclosure filed with the London Stock Exchange.
Isotope Bidco Limited, a newly formed acquisition vehicle, will acquire Intertek’s entire issued and to-be-issued ordinary share capital.
The vehicle will be majority-owned by funds and investment vehicles managed and/or owned by EQT Group, with indirect minority investments from Luxinva, a wholly owned subsidiary of ADIA, and ATIC Second International Investment Company LLC, a subsidiary of Mubadala Investment Company.
Under the ownership structure set out in the disclosure, EQT funds and investment vehicles will own 76% of Bidco, while Luxinva will own 16% and Mubadala will own 8%.
The announcement does not disclose the separate investment amounts by ADIA and Mubadala. Bloomberg reported that ADIA’s investment is about 1 billion pounds and Mubadala’s about 500 million pounds.
Intertek is listed on the London Stock Exchange and operates in the Assurance, Testing, Inspection and Certification industry. The company has more than 1,000 laboratories and offices in over 100 countries.
Under the terms of the acquisition, Intertek shareholders will be entitled to receive a total value of 61.077 pounds per share, comprising 60 pounds in cash and the FY25 final dividend of 107.7 pence per share.
Once the acquisition becomes effective, Intertek shares are expected to be delisted from the London Stock Exchange and the company is expected to be re-registered as a private company.
Matthias Wittkowski, Global Head of Services at EQT Private Equity, said EQT was “delighted” to have reached an agreement to acquire Intertek, describing it as a global leader in the ATIC market with longstanding customer relationships and technical expertise.
“As a growth-oriented investor, EQT is committed to investing in Intertek, with a particular focus on innovation and targeted M&A to enable further international expansion and innovation,” he said.
André Lacroix, Chief Executive Officer of Intertek, said the company had become “a true world leader” in the quality assurance industry over the past decade.
“In EQT I truly believe we have a partner who is as committed as we are to accelerating our growth and enabling Intertek to unleash its full potential for our clients and our people over the years ahead,” Lacroix said.
He said the offer represented an attractive opportunity for Intertek shareholders by delivering cash certainty.