(Alliance News) - Intertek PLC on Monday said it will acquire a "leading provider" of metallurgical testing services", adding to the company's mineral testing portfolio and helping it to establish an American foothold.
Intertek is a London-based provider of assurance, testing, inspection and certification services, with a market capitalisation of GBP7.40 billion.
The company said that it had agreed to acquire Base Metallurgical Laboratories Ltd and Base Met Labs US Ltd, metallurgical testing providers based in British Columbia and Arizona, respectively.
Collectively known as Base Met Labs, the company was described by Intertek as "a leading provider of metallurgical testing services for the minerals sector", and delivered GBP7.8 million in revenue in 2023.
Intertek said that Base Met Labs "benefits from growing demand for minerals testing", and holds significant growth potential in battery and energy metals, considered critical for the development of sustainable mining practices.
Intertek said that the acquisition will complement its "existing strengths in geochemistry, mine site laboratories and trade inspection", while also establishing its mineral testing footprint in North and South America.
Intertek added that the deal will allow it to capitalise on the current success of its Minerals Global Centre of Excellence laboratory in Perth, Australia.
Financial details of the acquisition were not provided by Intertek.
Chief Executive Officer Andre Lacroix said: "There is no doubt that, with a growing population and the rise in demand for raw materials, the requirement for leading ATIC solutions at every stage of the minerals and mining supply chain globally is increasing rapidly. The acquisition of Base Met Labs is highly complementary to our ATIC service offering, establishes a minerals testing footprint for Intertek on the American continent and creates attractive growth opportunities with existing and new clients."
Shares in Intertek were down 0.2% at 4,578.00 pence each in London on Monday morning.
By Hugh Cameron, Alliance News reporter
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Intertek Group (ITRK)