Singapore state-owned investor Temasek Holdings Pte acquired testing company Element Materials Technology from buyout firm Bridgepoint Group Plc, marking the U.K. buyout firm’s biggest-ever exit.
The transaction was announced on Tuesday, confirming an earlier Bloomberg News report, but terms weren’t disclosed. Temasek, which already owned over 20% in the business, acquired control at an enterprise value of more than $7 billion, people familiar with the matter said. That makes it one of Temasek’s largest investments in Europe to date.
Element Materials, which can trace its history back almost two centuries, generates annual revenues of about $1 billion and has grown at over 20% a year in the past decade, according to today’s statement. The London-based firm tests and certifies products and materials used in industries ranging from oil and gas to aerospace and pharmaceuticals.
The company has more than 200 laboratories across 30 countries employing over 7,000 scientists, engineers and other technical staff, and is benefitting from increased client demand for sustainability.
“The business has been bold in its ambition, delivered impressive organic growth, and has been clinical in its acquisition strategy,” Chris Busby, partner at Bridgepoint, said in the statement.
U.K.-listed private equity firm Bridgepoint, which agreed to buy the business in 2015 from rival 3i Group Plc, began exploring a sale late last year, Bloomberg News previously reported.
Temasek, using its insight as an existing investor, preempted a bidding process that drew interest from other buyout firms as well as strategic investors including Cinven Ltd. and the Canada Pension Plan Investment Board, the people said.
“We are pleased to continue our relationship with Element as it works with its customers and explores greater opportunities to be part of their decarbonization and sustainability journeys,” Uwe Krueger, Temasek’s head of Europe, Middle East and Africa, said in the statement.
The sale of Element comes after Bridgepoint went public in a July initial public offering. The buyout firm currently has a market capitalization of $4.2 billion.
Bank of America Corp., Goldman Sachs Group Inc. and Rothschild & Co. advised Element on the deal.
