EQT takes Intertek private in $14bn UK buyout

The deal highlights renewed private equity appetite for undervalued UK-listed companies.

Swedish private equity giant EQT has agreed to acquire UK product testing company Intertek in a GBP10.9 billion ($14.5 billion) deal, marking one of the largest take-private transactions in the UK market this year.

The acquisition will see Intertek shareholders receive GBP61.08 per share in cash, alongside a dividend payment, after months of negotiations between the company and EQT.

The transaction represents a significant turnaround, with Intertek previously rejecting multiple approaches from EQT on valuation grounds before eventually agreeing to the improved offer.

However, the company faced mounting pressure from investors, including activist shareholders Palliser Capital, PrimeStone Capital, and Lost Coast Collective, to engage constructively with EQT’s approach.

The deal provides EQT with control of one of the world's leading testing, inspection, and certification companies, operating across industries including consumer products, energy, pharmaceuticals, and industrial markets.

Wealth funds Abu Dhabi Investment Authority and Mubadala are also set to become minority shareholders following the deal, with 16% and 8% stakes, respectively.

Listed companies have increasingly become targets for private equity firms as relatively low valuations have made UK assets attractive compared with other developed markets.

For public market investors, however, the trend raises questions about whether UK companies are being acquired too cheaply.

The deal also underscores the increasingly important role of shareholders in shaping corporate outcomes.

While EQT ultimately secured board support, investor pressure helped push the company toward a transaction after initial resistance to earlier bids.

Ultimately, if valuations in the UK market remain depressed, then investors can likely expect to see more companies become acquisition targets.

Like this article? Sign up for our free newsletter.