Exova to be bought by Element Materials in £620m deal
After several weeks of speculation, it has been announced that global lab testing specialist Exova has accepted an all-cash takeover from its industry rival Element Materials Technology Group.
The deal, worth a reported £620 million, will see Element pay £2.40 per share to all investors in Exova. This represents a 10.7 per cent premium to the stock’s closing price on March 24 before Exova entered into discussions with potential buyers.
It was also reported in the Financial Times that Exova has climbed approximately 39 per cent over the past year to its £2.20 pricing after it emerged that majority shareholder, Clayton Dubilier & Rice, would be putting it up for sale. March saw Exova, whose laboratories test the safety and performance of products used in industries ranging from aerospace to pharmaceuticals, receive proposals for a possible cash offer from Element.
In a statement issued last week, Element stated the transaction is expected to increase its reach across North America, Europe and Asia and that the combined business will boast more than 6,200 employees, with over 195 laboratories and operating in more than 30 countries.
CEO of Element, Charles Noall said: “The combined group will benefit from having the best technical talent, very significant testing capacity and a strong network of facilities to support our customers’ global testing requirements.”
Allister Langlands, chairman of Exova said: “This represents a good outcome for shareholders and the combinations of Exova and Element creates a global leader in the testing market. Since the IPO, the Exova management team have made significant progress driving organic growth across many of our businesses and developing an attractive acquisition strategy.”
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