UK’s Intertek agrees to buy Australia’s SAI Global Assurance for $660m

Photo: Reuters

British inspection and product testing company Intertek Group agreed on Thursday to buy SAI Global Assurance for A$855 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 second-party audits to clients across 130 countries, and has a strong position in food and agriculture, and also carries out environmental and sustainability audits.

The Australia-based company’s environmental management systems help 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 cash-free and debt-free basis, is expected to add to Intertek earnings from the first year post acquisition.

SAI Global Assurance is expected to achieve revenues of A$240m 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 Kong-based BPEA, which bought SAI Global out in 2016 for A$1 billion, the people said, declining to be named as they were not authorised to speak to the media.

Baring still owns SAI Global’s risks business and other smaller units and may kick off a separate sale process for the risks unit, said one of the sources.

The private equity firm declined to comment.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.