EQT's Intertek Take-Private Backed by ADIA & Mubadala

EQT Private Equity has secured significant backing from two of Abu Dhabi's most prominent sovereign wealth funds, the Abu Dhabi Investment Authority (ADIA) and Mubadala Investment Company, for its substantial take-private acquisition of the UK-based testing and assurance firm, Intertek. The deal, valued at approximately £10.9 billion (enterprise value), marks a major transaction in the business services sector, with the Abu Dhabi investors collectively committing around £1.5 billion to the transaction.

Under the terms of the agreement, ADIA is contributing roughly £1 billion, while Mubadala is investing approximately £0.5 billion. This strategic co-investment structure sees ADIA's subsidiary, Luxinva, holding a 16% stake in the acquisition vehicle, Isotope Bidco, and Mubadala owning 8%. EQT funds will retain a majority ownership of 76%, with the Swedish firm orchestrating the deal's execution, subject to standard consent protocols from its co-investors.

The offer to Intertek shareholders represents a compelling premium, valuing the company's equity at approximately £9.5 billion. Shareholders are set to receive £61.077 per share, which includes £60 in cash and the final 2025 dividend of 107.7 pence. This valuation reflects a significant uplift, estimated at around 40% above Intertek's share price prior to mid-April, and potentially as high as 64% compared to early April trading levels, signaling a robust endorsement of the deal's terms.

The acquisition process, structured as a court-sanctioned scheme of arrangement, is anticipated to conclude by the end of the fourth quarter of 2026 or the first quarter of 2027. This move follows a period where Intertek had been exploring strategic alternatives, including a potential separation of its Energy & Infrastructure division from its core Testing & Assurance operations. However, the final offer from EQT, which saw earlier proposals rejected on valuation grounds, prompted the company's board to pause its strategic review and recommend the acquisition.

Matthias Wittkowski, Global Head of Services at EQT Private Equity, expressed enthusiasm for the agreement, highlighting the firm's commitment to investing in Intertek's future growth, particularly through innovation and strategic mergers and acquisitions. For ADIA and Mubadala, this minority stake provides valuable exposure to a stable, cash-generative global quality assurance business without the complexities of direct operational management. This approach aligns with the growing trend of sovereign investors participating in large-scale public-to-private transactions, leveraging their substantial capital pools to support major buyouts.

The participation of these Abu Dhabi entities is crucial in facilitating such large-cap deals, reducing the equity burden on the primary sponsor. Mubadala, with its extensive global portfolio valued at $385 billion, and ADIA, a consistent and significant backer of European public-to-private transactions, underscore the increasing importance of strategic co-investments in the private equity ecosystem. The quality assurance and testing services market, a critical component of global supply chains and regulatory compliance, continues to attract substantial investment, driven by increasing complexity and demand for independent verification.