British laboratory testing group Intertek has announced its intention to recommend a £4.5 billion takeover bid from Swedish private equity firm EQT. The deal, which values Intertek at approximately £4.5 billion, represents a significant premium on the company's share price prior to speculation.
Details of the Offer
EQT, through its listed affiliate EQT AB, has proposed a cash offer of £42.50 per share, a 35% premium over Intertek's closing price on 12 May. The Intertek board has unanimously agreed to back the offer, citing that it provides shareholders with an attractive and certain cash return.
Strategic Rationale
Intertek, headquartered in London, is a global leader in testing, inspection, and certification services, operating in over 100 countries. The company has faced headwinds from slowing demand in some of its key markets, including China and the energy sector. EQT's acquisition is expected to provide Intertek with additional resources and strategic support to accelerate growth and invest in new technologies.
EQT has stated its intention to maintain Intertek's headquarters in the UK and retain its management team. The firm plans to support Intertek's expansion in high-growth areas such as sustainability testing and digital services.
Market Reaction
Shares in Intertek rose sharply on the news, climbing over 30% in early trading to just below the offer price. Analysts noted that the deal reflects a trend of private equity firms targeting UK-listed companies, which are often seen as undervalued compared to their international peers.
Regulatory Approval
The takeover is subject to approval from Intertek shareholders and regulatory clearances, including from the UK's Competition and Markets Authority. The process is expected to be completed by the fourth quarter of 2026.
Intertek's chairman, Peter Hill, said: "The board believes that this offer represents a compelling opportunity for shareholders to realize value at a significant premium. We are confident that EQT is the right partner to take Intertek forward."
About the Companies
Intertek was founded in 1885 and has grown to become one of the world's largest testing companies, with over 43,000 employees. EQT is a global investment firm with €230 billion in assets under management, focusing on private equity, infrastructure, and real estate.
The deal underscores the continued appetite of private equity for high-quality industrial services firms with strong cash flows and global reach.
