Intertek acquires Moody International for a consideration of £450 million

Intertek Group plc is to acquire the UK’s leading provider of quality and safety services to the global energy industry, Moody International. The investment is for a consideration of £450 million on a cash-free and debt-free basis. Intertek Group is also a leading international provider of quality and safety services.  

Moody also provides systems certification services to the manufacturing, construction and service markets. Headquartered in Haywards Heath, UK, Moody employs around 2,500 people in over 80 offices and 60 countries. Moody is currently owned by companies controlled by Investcorp Securities Limited, and the management of Moody.

Intertek is funding the acquisition entirely in cash from new and available debt facilities. Post the investment, Moody will join the Industrial Services division of Intertek. Together Intertek and Moody will have a leading technical services platform in Intertek's sector of the global energy market. The acquisition offers significant benefits for and opportunities to the company, such as becoming a leading provider of quality and safety services for the global energy market.

It also enables the firm create a global platform for the provision of Industry Services, extending existing EU and North American positions, as well as extending the depth of the service portfolio for energy assets, processes and products. The investment will see the UK firm become a global player in systems certification and increase revenue diversification for Intertek.

The acquisition, excluding reorganization and associated costs, is expected to be earnings enhancing for the firm in the current financial year and is expected to be materially earnings enhancing next year. However, the transaction is conditional upon competition clearances in certain countries. It is anticipated that the necessary clearances will be obtained by the end of April and the transaction will complete immediately after. Brendan Connolly, Moody's Chief Executive Officer, will remain as part of the management team going forward.

Wolfhart Hauser, Chief Executive Officer of Intertek, said Monday's announcement marks an important stage in the ongoing development of Intertek. Hauser said Moody operates in one of Intertek’s core industries, the global energy market, which is set for strong long term growth.

The combination of Moody and Intertek provides a platform for the enlarged group to further develop its service offerings and network within the oil and gas industries specifically, but also to the wider energy and industrial markets. Intertek will now have a leading position in providing quality and safety services to the assets, processes and products for the energy market.

7th March 2011