Buyout shop 3i Group will pay 103 million pounds ($205 million) for Netherlands-based Stork Materials Technology, Reuters reported. Stork Materials provides materials testing services in labs across Europe and the U.S. 3i Group is based in London.
(Reuters) – Private equity firm 3i Group will buy Netherlands-based materials testing business Stork Materials Technology for 130 million pound ($205 million) deal, the company said Tuesday.
London-based 3i is buying the firm from Stork BV, an aerospace and industry services company based in the Netherlands.
Stork Materials Technology has a network of laboratories which provide industries in Europe and the U.S. with data about their products and materials. It has 12 laboratories in Europe, of which eight are in the Netherlands, and 15 in the U.S.
“It is a great sector,” said Andrew Olinick, a principal at 3i, speaking in a phone interview. He said he anticipated it to grow as many more governments are requiring testing of products to ensure quality.
“A lot of governments have said: ‘If you want to be in the aerospace sector you need to test everything in the plane,”‘ Olinick added.
3i has made other testing and inspection industry investments. It invested in Trescal, a European calibration and measurement services company, and Inspectorate, a testing and inspection company, which it sold to French certification company Bureau Veritas earlier this year.
“They’re really just great businesses fundamentally, given the recurring revenue nature, driven by regulation and by the fact that companies can’t afford to have anything go wrong in their production line anymore,” he added.
(Editing by Phil Berlowitz)