SGS,theworld's leadingtesting,inspectionandcertificationcompany, announcesthatithas signedadefinitive agreementtoacquiretheentireissuedsharecapitalofAppliedTechnicalServices(“ATS”),aleadingprovider of specialized Testing, Inspection, Calibration and Forensics solutions in NorthAmerica.ATS is expected to bring USD 460 million of sales and USD 95 million of EBITDAbefore synergies in 2026.
With close to 60 years of history,ATS is a resilient and diversified pure US player with a strong brand and service culture. It delivers solutions and services in regulated and high-growth end-markets such as Manufacturing, Aerospace & Defense, Power Generation & Distribution, and Insurance. Powered by a team of 2,100 skilled professionalsandanetworkof85state-of-the-artfacilitiesstrategicallylocated acrosstheUnited States,ATSserves a large base of blue-chip clients across a broad range of industries.
Theproposed transactionwillstrengthenSGS'spositionintheUSwithtotal annualsalestoexceedUSD1.5billion in NorthAmerica. This marks a major milestone in SGS's ambition to more than double its sales in the region by 2027 comparedto2023. It willalsoallow SGStoexpandintonew attractivesegments.Thecomplementarity ofthe offers and customers opens significant opportunities for cross-selling.
ThistransactionisvaluedatUSD1,325million(EnterpriseValueonadebt-free,cash-free basis)*correspondingtoa multiple of 11.2 times 2026 EBITDAincluding run rate synergies.Asmall portion of less than USD 100 million will be paid in SGS shares to some shareholders and key employees subject to a three-year lock up period. The remainder of the purchase price will be financed through cash and debt while maintainingthe leverage around 2 times. EBITDA synergies of at least USD 30 million per year are expected on a run rate basis within 3 years of closing, driven by cost rationalization and cross-selling opportunities. The acquisition will be accretive on the EPS from the first year. It is also expected to enhance SGS's revenue growth and adjusted operating income margin, supported by the synergies.
Thetransactionissubjecttocustomaryclosing conditionsandisexpectedto close bylate2025/early2026.
Géraldine Picaud, CEO of SGS, commented:
“We are very happy to have signed the acquisition of Applied Technical Services. This transaction will significantly accelerate the execution of Strategy 27 by strengthening our presence in North America. ATS has exceptional teams, highly skilled with strong integrity and customer-oriented culture. By combining our forces in the US, we will deliver sustainable growth and synergies, and create lasting value for our shareholders. We are incredibly excited about the significant opportunities ahead.”
ABOUTSGS
SGS is the world's leading Testing, Inspection and Certification company. We operate a network of over 2,500 laboratories and business facilities across 115 countries, supported by a team of 99,500 dedicated professionals. With over145yearsofservice excellence,wecombine theprecisionandaccuracy thatdefineSwisscompaniesto help organizations achieve the highest standards of quality, compliance and sustainability.
Our brand promise – when you need to be sure – underscores our commitment to trust, integrity and reliability, enablingbusinessestothrivewithconfidence.Weproudlydeliver ourexpertservices throughtheSGSnameand trusted specialized brands, including Brightsight, Bluesign, Maine Pointe and Nutrasource.
SGS is publicly traded on the SIX Swiss Exchange under the ticker symbolSGSN(ISINCH1256740924,Reuters SGSN.S, Bloomberg SGSN:SW). For more information visit www.sgs.com
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SOURCE SGS
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