May 13 Reuters British inspection and product testing company Intertek Group agreed on Thursday to buy SAI Global Assurance for A855 million 660 million, as it builds market share in Australia, North America, the UK and China.
SAI Global Assurance, which is indirectly owned by private equity firm Baring Private Equity Asia BPEA, provides secondparty audits to clients across 130 countries, and has a strong position in food and agriculture and also carries out environmental and sustainability audits.
The Australiabased companys environmental management systems helps its customers reduce energy consumption, carbon emissions and energy costs at a time when investors and corporations worldwide have become more sensitive to climate goals.
Intertek, which provides testing, inspecting and certification to industries, said it would finance the deal using debt.
The deal, on a cashfree and debtfree basis, is expected to add to Intertek earnings from the first year post acquisition.
SAI Global Assurance is expected to achieve revenues of A240m and an adjusted earnings before interest, taxes, depreciation and amortization EBITDA margin of 23 in the financial year ending 30 June 2021, Intertek said in its announcement.
Jefferies advised BPEA and SAI Global on the sale while Deutsche Bank advised Intertek, according to people with knowledge of the transaction. The banks did not immediately comment.
The sale marks a partial exit for Hong Kongbased BPEA, which bought SAI Global…