Last checked at 3 Mar 2014 07:02
Stock Exchange Release
3 March 2014, 7.02am London, UK
Intertek acquires INSPEC
Intertek Group plc ("Intertek"), a leading quality solutions provider to industries worldwide, announces it has acquired International Inspection Services Ltd (INSPEC), a UAE-based provider of non-destructive testing (NDT) and associated services to the oil and gas industry.
Intertek purchased INSPEC from Lamprell Energy Ltd, a subsidiary of Lamprell plc (Lamprell) for a total cash consideration of US $66 million (GBP 40 million). Lamprell will remain a significant customer of INSPEC and as part of the acquisition, Intertek has also entered into a multi-year preferred supplier agreement with Lamprell for the provision of NDT and associated services.
Established in 1993, INSPEC operates across the Middle East from the UAE, employing 720 staff, including 610 technical personnel and offering one of the most diverse ranges of NDT services on the market in the Middle East. The acquisition of INSPEC builds on previous Intertek acquisitions of UK-based NDT Services in 2012 and US-based GXT in 2013, to create three regional NDT hubs, offering global customers combined services, knowledge and management.
INSPEC will form part of Intertek's Industry & Assurance division, and align with Intertek's existing Technical Inspection Services and Asset Integrity Management businesses in the region.
Wolfhart Hauser, Chief Executive Officer of Intertek, commented:
"INSPEC has built a strong footprint and established a reputation as one of the most diverse providers of NDT services in the Middle East and will fit well into our developing portfolio of regional NDT hubs. This acquisition represents an exciting extension to our non-destructive testing inspection business, bringing expertise and regional market access to Intertek, as well as supporting our strategy, started with the 2011 acquisition of Moody International, of building a full scope industry business globally, including core operating and asset integrity skills."
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Contacts
Aston Swift, Intertek
Telephone: +44 (0) 20 7396 3400
aston.swift@intertek.com
Richard Mountain, FTI Consulting
Telephone: +44 (0) 20 7269 7186
richard.mountain@fticonsulting.com
Corporate website: www.intertek.com
About Intertek
Intertek is a leading quality solutions provider to industries worldwide. From auditing and inspection, to testing, training, advisory, quality assurance and certification, Intertek adds value to customers' products, processes and assets. With a network of more than 1,000 laboratories and offices and over 36,000 people in more than 100 countries, Intertek supports companies' success in a global marketplace. Intertek helps its customers to meet end users' expectations for safety, sustainability, performance, integrity and desirability in virtually any market worldwide. Visit www.intertek.com
Intertek Group plc (LSE: ITRK) is listed on the London Stock Exchange and is a constituent of the FTSE 100 index.
What is Non-destructive testing (NDT)?
Non-destructive testing, or NDT, is a technique used to help assure safety and reliability of assets through detection of any flaws or defects in products or industrial components such as pipelines, power stations, refineries and oil platforms, without disrupting operations or delaying processes. The techniques used are for example X-ray, gamma-ray, ultrasonic, magnetic particle testing dye penetrant testing and pipeline crawlers. Demand for this service has grown, driven by increasing regulation and standardisation, extending asset lifespans and the need to protect reputation from product failure.