Intertek, the FTSE 100 laboratory testing company, has agreed to back a £10.6bn takeover approach 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, subject to a firm bid. The deal includes £10.6bn including debt, or £9.4bn without.
The approach follows three previous rebuffed offers 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. It stated that after evaluating the offer and consulting investors, it would be inclined to recommend the deal, which requires shareholder approval.
Intertek, headquartered in London, traces its roots to the late 19th century and listed on the London Stock Exchange in 2002, joining the FTSE 100 in 2009. It employs 45,000 people across over 1,000 labs worldwide. CEO André Lacroix has faced pressure from some investors, including Matt Peltz of Lost Coast Collective, which owns 1.2% of Intertek, to accept the offer.
Investor opinions have been divided, with Palliser Capital, Harris Associates, and PrimeStone Capital urging engagement with EQT, while others advised holding firm. Marathon Asset Management suggested “fair value is over £60 a share”. 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.
EQT was founded in 1994 as a spinout from Investor AB, the Wallenberg family’s industrial holding company. The family’s business interests date back to 1856. Dan Coatsworth of AJ Bell noted that UK-listed companies are increasingly being acquired, with Gamma Communications also attracting interest from US private equity firm Providence Equity Partners.
