Testing and certification group Intertek Group plc is considering a potential separation of its lower-margin energy and infrastructure division, as pressure mounts to unlock shareholder value following a rejected takeover bid.
The developments come amid broader consolidation in the testing and certification sector. Intertek previously mulled a takeover of France’s Bureau Veritas, which instead opted to align with Switzerland-based SGS SA, highlighting intensifying competition and repositioning across the industry.
Earlier this month, Swedish private equity firm EQT AB approached Intertek with an unsolicited €10.6 billion offer for the entire business. Intertek’s board declined the proposal, though EQT has until mid-May to submit a revised bid, reported Reuters. Market observers suggest that any acquisition by EQT would likely have involved breaking up the group along similar lines.
Analysts point to a significant disparity in profitability between Intertek’s divisions. According to estimates from the Financial Times, the company’s core testing and assurance business could command a valuation of approximately €7.3 billion, equivalent to roughly 15 times its annual operating profit — broadly in line with European peers trading at multiples between 13 and 17.
By contrast, the energy and infrastructure unit generates margins around half those of the testing segment. As a result, it is seen attracting a lower valuation multiple of about 10 times operating profit, implying a value near $1.7 billion. Combined, these figures suggest a total group valuation of roughly €9 billion — below EQT’s rejected offer, indicating the bid may have been more generous than initially perceived.
At the start of April, Intertek’s market capitalization was around €7 billion, underscoring the gap between its current valuation and the levels implied by both the sum-of-the-parts analysis and EQT’s approach.
Intertek tests, analyses and certifies lubricants for quality, performance and compliance with industry standards. The company also supports manufacturers with quality control and product certification, used oil analysis and environmental and regulatory testing to confirm lubricants meet safety and sustainability requirements.