Intertek Agrees To Acquire US-based PSI For $330 Mln – Quick Facts
Intertek Group has agreed to acquire Professional Service Industries for $330 million on a cash-free and debt-free basis.
This is equivalent to a 7.6x multiple based on adjusted LTM EBITDA of US$43 million for the 12 months to 31 August.
PSI is a leading US based provider of testing and assurance services to commercial and civil construction markets, with a broad service offering including building materials testing; geotechnical services; and property and environmental assurance. Founded in 1961 and headquartered in Illinois, PSI employs approximately 2,400 people at 87 locations across the US and provides a full spectrum of services to a diverse, customer base nationwide. PSI is currently majority owned by the private equity firm Olympus Partners.
Chief executive AndrÃ© Lacroix said: “The acquisition of PSI will expand Intertek’s presence in adjacent US growth markets. By combining Intertek’s Building business with PSI’s construction activities, we will offer our customers an industry-leading portfolio of testing and assurance services.
“The demand for construction and building testing and assurance services will continue to grow driven by the strengthening US economy, and we will be uniquely positioned to capture an increased demand for higher quality commercial buildings and public infrastructure. In the NDT business, greater demand for pipelines as a safer and more cost effective means of transportation will drive additional investment that Intertek will benefit from.
“The acquisition of PSI will build on the strong growth momentum in our Building business and on the successful acquisition of Architectural Testing Inc. (ATI) in 2013. This acquisition is in line with our strategy of acquiring complementary businesses that deliver attractive financial returns.
“PSI is an excellent business with a strong track record of service delivery and we are delighted to welcome the PSI team to Intertek. We look forward to providing our customers with a greater level of assurance and convenience as we broaden our portfolio of services and expand our geographic footprint.”