3i-backed Element Materials Technology has closed on $93.25 million of new financing, the company announced Friday. Elements Materials Technology is a provider of materials testing and inspection, product qualification testing and failure analysis for the Aerospace & Defense, Oil & Gas, Transportation and Power Generation industries. The money was used to fund Element’s acquisition of Materials Engineering Research Laboratory Limited, a UK-based company
3i-backed Element Materials Technology (“Element”) has secured $93.25 million of new financing to support its continued buy-and-build strategy to become the recognised leader for materials testing and inspection, product qualification testing and failure analysis—servicing primarily the Aerospace & Defense, Oil & Gas, Transportation and Power Generation industries—in the North America, Europe and Asia markets.
George Archer, 3i Banking Director commented: “New financing commitments were significantly oversubscribed, indicating the quality of Element’s credit. All five syndicate banks currently lending to Element participated in the transaction with two new banks joining, as well.The upsizing of the debt facilities provides significant firepower for further acquisitions.”
The new financing has already been used for Element’s acquisition of Materials Engineering Research Laboratory Limited (MERL) headquartered in Hitchin, Hertfordshire, UK. The addition of MERL and its world-class reputation for the evaluation, analysis and testing of polymeric materials, components and structures is further evidence of Elements resolve to providing industry-leading service for the growing implementation of non-metallics.
Founded in 1986 MERL has developed into an independent company with thousands of international clients throughout the Oil & Gas, Aerospace, and Land Transportation sectors. Their range of projects include ensuring the safe and reliable use of materials in offshore Oil & Gas exploration, new polymer material for heart valves, and composite materials in aircraft structures.
This acquisition is preceded by two additional high-profile acquisitions in the U.S.—Mar-Test of Cincinnati, Ohio and DTL of Detroit, Michigan. Further to these acquisitions, very material capital investments in new capacity and technology have been made at its Charlotte, Cleveland, Huntington Beach and Wixom facilities.
Charles Noall, President and CEO of Element, commented: “I’m pleased to see our growth strategy, hard work and sound financial performance validated and supported by these new funds. The acquisition of MERL emphasizes our continued commitment to reinforce our service offering of quality-critical polymer and composite testing in multiple industries. We will remain agile in seeking new opportunities for increased capacity, innovation and capabilities for our growing list of world-class customers.”
Dr. Rod Martin, CEO of MERL Ltd, commented: “We are delighted to join Element. Not only will this allow us to give our existing clients a much wider technology offering, it also presents MERL staff with greater opportunities to broaden their skills working closely with Element laboratories throughout the U.S. and Europe.”