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12/2015

ELEMENT MATERIALS TECHNOLOGY acquired by BRIDGEPOINT

UNITED KINGDOM Industrial Services / TIC (Testing, Inspection, Certification) EV 1b - 4b USD

Context

Bridgepoint has acquired a majority stake in Element Materials Technology from 3i Group and its managed funds. This secondary LBO marks the end of a highly successful five-year partnership with 3i, during which Element nearly trebled its revenue and quadrupled its EBITDA through 10 strategic acquisitions. The strategic rationale for Bridgepoint is to utilize Element as a primary platform for further consolidation in the global materials testing market. Bridgepoint intends to support CEO Charles Noall and his team in accelerating their buy-and-build strategy over the next five years, expanding the group’s technical capabilities and geographic reach. The deal was finalized as Element reached a turnover of approximately $293 million, with 75% of its revenues generated in the US market, positioning it as the leading independent player in its specialized niches.

ELEMENT MATERIALS TECHNOLOGY, which reported an EBITDA margin of in 2015, is valued in this transaction at an EV/EBITDA multiple of , representing a to the average currently observed in the Business Services sector (11.4x).

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Target

Element Materials Technology is a global testing company specializing in materials testing, product qualification, consulting, and certification services. Majority-owned by the international private equity firm Bridgepoint, the organization has pursued an aggressive "buy-and-build" strategy, acquiring 17 businesses in the years leading up to 2017. Its investment thesis focuses on creating the world’s fastest-growing independent testing and certification provider by consolidating niche leaders in the aerospace, transportation, and health sciences sectors. The group’s criteria prioritize technical strength and geographic reach to support customers across worldwide programs. With over 200 laboratories globally, the firm leverages its scale to provide integrated, best-practice services to over 40,000 customers.

Ent. Value

Equity Value

Multiples

EV / Revenue

EV / EBITDA

EV / EBIT

Historical Financials (USD)

Year
Rev
EBITDA
EBIT
2015
2014

Other operations with ELEMENT MATERIALS TECHNOLOGY

List of similar M&A transactions (Date, Acquirer, Target, Country, Sub-sector)
DateAcquirerTargetCountrySector
09/2022ELEMENT MATERIALS TECHNOLOGYNATIONAL TECHNICAL SYSTEMS (NTS)UNITED STATESTIC (Testing, Inspection, Certification)
01/2022TEMASEKELEMENT MATERIALS TECHNOLOGYUNITED KINGDOMTIC (Testing, Inspection, Certification)
06/2017ELEMENT MATERIALS TECHNOLOGYEXOVA GROUPUNITED KINGDOMTIC (Testing, Inspection, Certification)

REFERENCES

Valuation range: EV 1b - 4b USD

Revenue range: 250M - 500M USD

EBITDA range: 50M - 100M USD

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of ELEMENT MATERIALS TECHNOLOGY by BRIDGEPOINT are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Target: element materials technology

Acquirer: bridgepoint