INTERTEK acquired by EQT PARTNERS

EQT has reached an agreement to acquire Intertek, a UK-based FTSE 100 company specializing in testing, inspection, and certification services, in an all-cash deal. The transaction values Intertek at £61.08 per share, including a dividend. This deal comes after months of negotiations between the two parties, during which EQT submitted multiple offers, all of which were initially rejected by Intertek's board due to concerns that the valuation did not adequately reflect the company's growth prospects and asset quality. EQT gradually increased its offer until it reached a level deemed acceptable by the board, amidst growing pressure from some shareholders. This acquisition is part of a broader trend of increased private equity activity in European mid and large caps, driven by compressed public market valuations and the appeal of assets generating stable, defensive cash flows. Intertek had also been exploring internal strategic options, including a potential separation of its businesses, which was ultimately abandoned in favor of the EQT deal. The transaction remains subject to customary closing conditions, including regulatory and shareholder approvals. Once completed, it will be one of the largest privatization deals in the UK in recent years, highlighting the ongoing interest of private equity firms in high-quality, cash-generative businesses.

Previously, the company had pursued a consolidation strategy by acquiring Alchemy (2018) and Sai Global Assurance (2021).