EQT passes litmus test

In a deal that effectively “runs the experiment” on private equity’s appetite for defensive industrials, EQT’s agreement to acquire Intertek for £60-a-share, implying an enterprise value of £10.6 billion, validates both its buyout discipline and the continued appeal of the testing, inspection and certification (TIC) model. Earlier bids at £58, £54 and £51 a share were rejected by the board. After the board was “minded to recommend” the improved bid, Intertek shares jumped almost 7%. Intertek chief executive André Lacroix had come under mounting pressure from investors to strike a deal, including Palliser Capital and Matt Peltz, son of activist investor Nelson Peltz. For EQT, the acquisition demonstrates its ability to win large-cap, strategically sensitive industrial assets in competitive conditions, reinforcing a broader shift in which assurance businesses, with resilient demand and regulatory-linked revenue streams, are increasingly attractive privatization targets.