finance
Intertek Agrees to £10.6bn Takeover by Swedish Firm EQT
Intertek, a FTSE 100 laboratory testing company, said its board is minded to recommend a £60-a-share offer from EQT after rejecting three prior bids. The deal values the company at £10.6bn including debt. Intertek had begun a strategic review of its business a month earlier and will pause that work.
May 13, 7:29 AM·2m read1 source
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The laboratory testing company Intertek has backed a £10.6bn takeover offer from Swedish private equity firm EQT after previously rejecting three lower bids. Intertek’s board said it was minded to recommend the £60-a-share proposal to shareholders if a firm offer is made.
The latest approach follows earlier bids pegged at £58, £54 and £51 a share. Intertek shares rose almost 7% to £56.65 on Wednesday morning after the announcement. The deal is valued at £10.6bn including debt, or £9.4bn on an equity basis. Other FTSE 100 companies that have accepted multibillion-pound offers this year include insurer Beazley and fund manager Schroders.
Background on the Companies EQT was founded in 1994 as a spinout from Investor AB, the industrial holding company of Sweden’s Wallenberg family. The family’s business interests date back to 1856. Bloomberg has estimated the family’s business empire at $40bn.
Intertek, headquartered in London, traces its origins to 1885 when three businesses in the UK, Canada and the US began testing and certifying grain cargoes. The company listed on the London Stock Exchange in 2002 and joined the FTSE 100 index in 2009.
It employs 45,000 people and operates more than 1,000 laboratories worldwide.
Intertek began a strategic review of its business a month ago. The company said its board remained highly confident in its standalone strategy and the value creation opportunity outlined in that review. After evaluating the latest offer and consulting with investors, the board indicated it would be minded to recommend the transaction, which would then be put to a shareholder vote.
