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October 2010 www.marinelink.com 47 Deal marries one of the world’s largest commodities inspection and testing groups with a leading ship classifica- tion society. Unique partnership in- volves two global firms dedicated to eliminating risk. Bureau Veritas has completed the ac- quisition of the commodities inspection and testing firm Inspectorate in a deal said to be worth about £450 million. With all approvals from relevant authorities in place, the agreement was made possible in part by financing achieved via existing and newly negotiated credit lines. Fol- lowing the acquisition, Bureau Veritas’ net debt will represent around 2x EBITDA, below the Group's banking covenants. At a recent press conference, Bureau Veritas billed the acquisition as a major step forward in its global leader- ship strategy, making it one of the world leaders in commodities inspection and testing. Headquartered in the UK, In- spectorate operates in 60 countries, em- ploying more than 7,000 people. Its three main market segments include oil and petrochemicals, metals and minerals, and agricultural products. In 2009, Inspec- torate reported £246 million in revenues, followed by organic growth of 10.8% in the first half of 2010. Inspectorate CEO Neil Hopkins now becomes a member of Bureau Veritas’ Executive Committee. The newly combined firm will consist of 47,000 employees, operating from 1,000 offices and 330 laboratories in 140 coun- tries. Combined annual revenues are ex- pected to exceed 3 billion. Synergy The unique merger provides a new di- mension for both groups. For Bureau Ver- itas, known primarily in the maritime sectors as a founding member of Interna- tional Association of Classification Soci- eties (IACS) and one of world’s largest ship classification societies, the access to Inspectorate’s laboratory network could allow the parent company to expand its offerings to its shipowner clients. For In- spectorate, the synergies allowed by a po- tential increase in business from its meat-and-potatoes maritime sector are as yet unknown, but probably bode well for a firm that reported oil and petrochemi- cal revenues to 59 percent of its 2009 rev- enues. In the U.S. alone, Inspectorate trailed only one other company in that category. Bureau Veritas Chairman and CEO Frank Piedelièvre said, "This acquisition is a unique opportunity for Bureau Veri- tas. In addition to leadership positions in its seven businesses, Bureau Veritas now attains a critical size in the very promis- ing commodities testing and inspection market, in which the Group will now be- come a key player. By integrating a com- pany of Inspectorate's quality and repu- tation, we are extending our business portfolio and bolstering our international network in the US and most emerging economies.” Bureau Veritas is counting on the trans- Bureau Veritas Completes Acquisition of Inspectorate (Continued Bottom Left page 48)
