Quebec-based Eddyfi/NDT has acquired Dublin-based NDT Global, an inline inspection and data analysis supplier for onshore and offshore pipelines. To support this deal, Novacap, made an C$163 million investment in Eddyfi/NDT while Caisse de dépôt et placement du Québec made an investment of C$107 million. Baird was financial advisor to Eddyfi/NDT in the transaction.
QUÉBEC, Feb. 5, 2020 /PRNewswire/ – Eddyfi/NDT, through a strategic partnership with Novacap and Caisse de dépôt et placement du Québec (“CDPQ”), announced today the acquisition of NDT Global. Headquartered in Dublin, Ireland, and with main operations in Stutensee, Germany, NDT Global is a premium ultrasonic pipeline inline inspection (“ILI”) and data analysis supplier for onshore and offshore pipelines worldwide. It delivers a full range of services including geometry and deformation inspection, metal loss and crack inspection, defect assessment and fitness for purpose investigations around the world.
The combination of Eddyfi Technologies and NDT Global is an innovative and private Test & Measurement (“T&M”) technology group focused on Non-Destructive Testing (“NDT”). Eddyfi/NDT will now have 1,000+ employees working in 20 global offices and serving customers in 110 countries. It is composed of high-end technology business units operating in two different segments: NDT Equipment and Application-Specific Integrated Inspections. The global headquarters are located in the advanced NDT hub of Québec city.
Martin Theriault, CEO of Eddyfi/NDT, says: “We have spent the past 10 years developing, acquiring and perfecting the most advanced NDT modalities in the world. At every level of technology, pushing the limits of NDT to new heights has allowed us to solve critical problems and deliver superior, information-rich data for the benefits of our clients. However, selling inspection instrumentation & technology alone in certain very niche and specialized sub-verticals, such as ILI inspection, simply does not work. We are therefore excited to join forces with NDT Global and work with them and their clients to take ILI NDT to the next level.”
This merger successfully joins two leaders in their respective markets: Eddyfi Technologies as a provider of the highest performance NDT inspection technologies and NDT Global as an advanced ultrasonic ILI and integrity services provider. Global pipeline operators have come to rely on NDT Global for the most accurate assessment of the condition of their pipeline assets. Coupled with the additional expertise in non-destructive testing techniques and technology of Eddyfi Technologies, NDT Global will deliver increased accuracy and enhanced information to assure the safe operation of pipelines.
Richard Matthews, President and CEO of NDT Global, comments, “Joining with Eddyfi/NDT offers a tremendous opportunity to leverage our respective technologies to develop even better solutions. At NDT Global we want to continue our trend of being a technology disruptor whilst delivering new and never seen before solutions to our customers through out of the box thinking, creativity and collaboration – we believe Eddyfi/NDT will help us materialize this vision.”
Furthermore, to complete this acquisition, Eddyfi/NDT confirmed a new round of equity financing with Montreal-based Novacap, making its first investment in the company with CA$ 163 million, and CDPQ, making an additional investment of CA$ 107 million. The new equity investment is combined with new debt financing provided by a banking syndicate led by National Bank of Canada and additional debt from Investissement Quebec (“IQ”). Over CA$ 600 million was raised to complete the NDT Global acquisition as well as pursue other strategic opportunities.
CDPQ made its initial investment in Eddyfi in March 2017. Since then, it has helped the company complete four additional acquisitions in Europe and North America, as well as diversify across technologies and geographies. In addition, CDPQ has supported the development of a new strategic plan to deliver substantial growth while also building an industrial technology business at the forefront of its sector. “Québec SME expansion and globalization is a key aspect of our strategy, and our support for Eddyfi over the years reflects that. Since our first investment, the company has experienced tremendous and sustained growth, becoming one of the largest private companies in the Greater Québec City area today,” said Charles Émond, President and Chief Executive Officer of CDPQ.
Novacap played a critical role in this transformative and complex acquisition. “The merger is highly strategic and represents a unique, complementary combination of a service provider and equipment manufacturer at the technological forefront of the non-destructive testing market. Asset aging, coupled with heightened public concern about environmental protection, has given rise to increasingly stringent pipeline integrity management programs. Operators understand the complexities of asset aging as well as the importance of public opinion, and they rely on NDT Global to continuously set new standards in pipeline inspection to address these issues. We are highly confident that NDT Global, under the Eddyfi/NDT group, will deliver superior inspection technology and value-added services to operators globally,” said David Lewin, Senior Partner at Novacap (TMT).
Finally, Pascal Tremblay, Novacap’s President & CEO, added: “I would like to thank our new business partners, Martin Theriault, Louis-Georges Gauvin (CFO), and their teams for being the driving force behind this acquisition. I would also like to thank CDPQ who played a critical role in the execution of this complex transaction, as well as our highly supportive limited partners who co-invested with us to make this deal possible. I am very happy to say that Eddyfi/NDT is the largest platform investment in Novacap’s history. We are proud to be a partner of the Eddyfi/NDT team, a Quebec-based leader in a global industry of this scale.”
Baird acted as an exclusive financial advisor to Eddyfi/NDT in the transaction. McCarthy Tétrault acted as lead legal advisor to Eddyfi/NDT.
Eddyfi/NDT is a fast-growing, innovative private Test & Measurement (T&M) technology group focused on Non-Destructive Testing (NDT). Through its 2 divisions, Advanced Non-Destructive Testing (NDT) Equipment and Advanced Application-Specific Integrated Inspection, it caters to asset owners, large engineering firms, and service companies globally in markets such as Aerospace, Energy, Mining, Power Generation, or Transportation. Eddyfi/NDT believes that advancing NDT science and technology via sensors, hardware, robotics and software makes the world safer, more productive and more environmentally secure. The company employs over 1,000 people throughout 20 offices worldwide, and serves clients in more than 110 countries. www.eddyfi-ndt.com
About NDT Global
NDT Global is a leading supplier of ultrasonic pipeline inspection and data analysis. Its state-of-the-art inspection fleet provides the entire inline inspection service (ILI) spectrum for onshore and offshore pipelines worldwide. NDT Global’s full range of services includes geometry and deformation inspection, metal loss and crack inspection, defect assessment and fitness for purpose investigations. First run success, best data quality and rapid report delivery are its key benchmarks. A skilled engineering and project management team, complemented by one of the best data analysis teams in the industry, has inspected and analyzed pipelines worldwide. The company has offices in Australia, Canada, Germany, Ireland, Mexico, Spain, UAE, UK and USA. www.ndt-global.com
Founded in 1981, Novacap is a leading Canadian private equity firm with CA$3.6 billion of assets under management. Its distinct investment approach, based on deep operational expertise and an active partnership with entrepreneurs, has helped accelerate growth and create long-term value for its numerous portfolio companies. With an experienced management team and substantial financial resources, Novacap is well positioned to continue building world-class businesses. Backed by leading global institutional investors, Novacap’s deals typically include leveraged buyouts, management buyouts, add-on acquisitions, IPOs, and privatizations. Over the last 39 years, Novacap has invested in more than 90 companies and completed more than 130 add-on acquisitions. The company has offices in Toronto, Ontario and Brossard, Quebec. For more information, please visit www.novacap.ca.
About Caisse de dépôt et placement du Québec (CDPQ)
Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at June 30, 2019, it held CAD326.7 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt. www.cdpq.com