Intertek, the FTSE 100 laboratory testing company, has agreed to support a £10.6bn takeover bid from Swedish private equity firm EQT, owned by the billionaire Wallenberg family. The board said it was 'minded to recommend' the £60-a-share offer to shareholders, provided a firm offer is made.
The deal, valued at £10.6bn including debt, follows three earlier rebuffed approaches at £58, £54, and £51 per share. Intertek shares rose nearly 7% to £56.65 on Wednesday. The company, which tests and certifies products before market, had initiated a strategic review a month ago.
Intertek, headquartered in London, traces its roots to the late 19th century and employs 45,000 people with over 1,000 labs worldwide. CEO André Lacroix faced pressure from some investors, including Matt Peltz of Lost Coast Collective, which owns 1.2% of Intertek, to accept the offer.
The final proposal is subject to due diligence, and Intertek has paused its strategic review, which included evaluating a potential separation of its energy and infrastructure arm. The division generates £1.6bn in annual revenues, while the consumer-facing product-testing business brings in £1.9bn.
