The board of London-headquartered laboratory testing company Intertek said it is minded to recommend a £10.6 billion takeover proposal from Swedish private equity firm EQT if the buyer submits a firm offer. The proposal is priced at £60 per share, valuing Intertek at £9.4 billion excluding debt and £10.6 billion including debt, according to The Guardian. It follows three prior approaches from EQT at £51, £54, and £58 per share, and sent Intertek shares up nearly 7% to £56.65.
The potential transaction would add to a series of large takeovers involving FTSE 100 companies this year, including accepted offers for insurer Beazley and fund manager Schroders. EQT was founded in 1994 as a spinout from Investor AB, the Wallenberg family’s industrial holding company.
Intertek had launched a strategic review shortly before the latest proposal and said it remained confident in its standalone strategy. The company had been evaluating a possible sale or demerger of its energy and infrastructure division, which generates £1.6 billion in annual revenue, from its consumer-facing product testing business, which generates £1.9 billion. Intertek has paused that review while EQT conducts due diligence.
The board’s position follows pressure from several investors urging engagement with EQT. Lost Coast Collective, which owns 1.2% of Intertek and is managed by Matt Peltz, told the board that the market did not appear to believe management could execute a partial sale and operational fix. Palliser Capital, Harris Associates, and PrimeStone Capital also urged engagement with EQT, while Marathon Asset Management said fair value was above £60 per share.
