Last checked at 15 Nov 2016 07:00
Stock Exchange Release
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION
15 November 2016, 7.00 am London, UK
Intertek takes #1 position in Mexico's fast growing environmental market
Intertek and ABC Analitic form a joint venture to create a market leading environmental quality assurance business. Intertek will own the majority of the joint venture.
Intertek Group plc (Intertek), a leading Total Quality Assurance provider to industries worldwide, is pleased to announce that it has entered into an agreement with the shareholders of Laboratorios ABC Química Investigación y Análisis, S.A. de C.V (ABC Analitic) to form an environmental services Joint Venture in Mexico (the "JV").
ABC Analitic has been a leading provider of water testing services in Mexico since 1970, being one of the pioneering companies to offer wastewater analysis, when the first regulations for the prevention and control of water pollution came into effect. Since then, ABC Analitic has continued as a market leader in the provision of its water testing and analytical services in the key areas of wastewater, natural and drinking water analysis, and has further diversified, both organically and through acquisition, into further areas of environmental testing.
In 2015 the Mexican population reached 120 million, having grown by 13% over the last 10 years, whilst GDP increased 26% during the same period. Given the strong growth in population and commercial activities, the quality and quantity of water available in Mexico is seen as a matter of national importance and therefore the focus of many strategic environmental projects. It is estimated that over 55% of the environmental services market in Mexico is focused on water utilities and wastewater treatment.
ABC Analitic is highly complementary to Intertek's existing environmental testing business in Mexico, which has a particular strength in soil testing and analysis. By bringing the two business together, Intertek will become the market leader in the provision of assurance, testing, inspection and certification services to Government environmental projects, regulators and corporations.
Commenting on the acquisition, André Lacroix, Chief Executive Officer of Intertek, said: "The formation of the joint venture with ABC Analitic will expand Intertek's presence in Mexico's attractive and fast growing environmental testing market. By joining forces, we will be able to offer our customers an industry-leading portfolio of testing and assurance services and be uniquely positioned to take advantage of Mexico's strong macroeconomic environment, increasing environmental regulation, as well as the country's particular focus on water quality. ABC Analitic is an excellent business with a strong track record of innovation and we are delighted to welcome ABC and its team to Intertek."
ABC Analitic is headquartered in Mexico City, Mexico and employs 580 people across 15 locations. The business generated revenues of c.£15 million in 2015.
A video describing the transaction in more detail can be viewed at www.intertek.com/investors/
- ENDS -
Contacts
For further information please contact
Josh Egan, Investor Relations
Telephone: +44 (0) 20 7396 3415 josh.egan@intertek.com
Jonathon Brill, FTI Consulting
Telephone: +44 (0) 20 3727 1000 intertek@fticonsulting.com
About Intertek
Intertek is a leading Total Quality Assurance provider to industries worldwide. Our network of more than 1,000 laboratories and offices and over 40,000 people in more than 100 countries, delivers innovative and bespoke Assurance, Testing, Inspection and Certification solutions for our customers' operations and supply chains.
www.intertek.com
Bringing quality and safety to life