EXOVA GROUP acquired by ELEMENT MATERIALS TECHNOLOGY
Context
Element Materials Technology has completed the acquisition of Exova Group PLC, joining two of the world's leading testing companies to create a single global TIC powerhouse. The deal was won following a competitive process involving other major bidders, including PAI Partners and Jacobs Holding AG. The strategic rationale for the deal is to achieve massive global scale, combining technical expertise to become the leader in global aerospace, oil and gas, and fire safety testing. The combined group expects to generate annual revenues in excess of $700 million and employs over 6,200 people. To support the acquisition, Element successfully raised $1.4 billion in first and second lien term debt, which was 4x oversubscribed, demonstrating strong lender confidence in the combined group's cash-flow potential and market-leading position.
EXOVA GROUP, which reported an EBITDA margin of in 2016, 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
Exova Group PLC is a leading laboratory-based testing group that provides safety and performance testing for products used across various industrial sectors, including aerospace, pharmaceuticals, oil and gas, and fire and building products. The organization operates a global network of laboratories dedicated to ensuring that materials and products meet regulatory standards and performance specifications. With a strong presence in Europe and North America, the entity specializes in high-stakes testing environments where precision and compliance are critical to the supply chain. Before its acquisition, the firm was listed on the London Stock Exchange and was recognized for its deep technical expertise in materials testing and product qualification.
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REFERENCES
Valuation range: EV 500M - 1.5b GBP
Revenue range: 250M - 500M GBP
EBITDA range: 50M - 100M GBP
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Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.
Press release: view release
Acquirer: element materials technology