Element Materials Technology Group (Element or the Group), a global leader in testing, inspection, and certification (TIC) services, has been acquired by Temasek from Bridgepoint.
Temasek, a global investor headquartered in Singapore, has been a minority shareholder in Element since 2019. The Group generates annual revenues of c.$1 billion and has grown at over 20% a year over the last ten years. The transaction value has not been disclosed and the transaction remains subject to customary regulatory approvals.
Operating in technically demanding and highly regulated sectors, Element is well positioned to further accelerate its growth as it builds stronger positions in end-markets, such as life sciences and connected technologies. The Group also benefits from strong global ESG tailwinds - with over 60% of its work already directly supporting customers on their sustainability journeys, it will continue to strengthen its position across the global TIC industry.
Element can trace its origins back 190 years, and now operates a global network of more than 200 laboratories across 30 countries, servicing thousands of customers in life sciences, connected technologies, aerospace, transportation, energy transition, built environment, and beyond. Element works with customers across a wide spectrum - from testing the next generation of aircraft and autonomous vehicles, to vaccine component testing in its US pharmaceutical laboratories; from the certification of smartphones and wearable technologies, to providing cellular carrier approvals and testing connected robots.
Headquartered in London, UK, Element’s team of over 7,000 scientists, engineers, and technologists support customers from early R&D, through complex regulatory approvals and into production, ensuring their products are safe and sustainable.
Element recently achieved the best ESG rating of any major TIC company globally, placing in the top 1.5% of all companies rated for ESG by Sustainalytics. Element’s 10.5 corporate ESG rating reflects its industry-leading ESG systems, management, and commitments, which include setting science-based climate targets and achieving net zero emissions across its entire business by 2035.
Allan Leighton, Non-Executive Chairman of Element, said: "Element has a highly talented management team and exceptional people across our offices and laboratories around the world. This transaction is a testament to their skills and commitment and creates the launchpad for the next exciting horizon of growth for the company."
Jo Wetz, CEO of Element, said: "The acquisition of Element by Temasek is a landmark transaction in the TIC sector, and a critical step in the development of the Group. We have grown from 20 locations and 600 colleagues ten years ago, to over 7,000 talented experts operating across 200 locations, and are ambitious to continue our rapid growth in the sector.
Bridgepoint has been an exceptional partner, helping to support a ten-fold increase in our turnover over the past decade. We are delighted to expand our relationship with Temasek - their intimate understanding of the Group and their track record of enabling businesses with sustainability at their core will help to accelerate the growth of our business in the years ahead."
"I am extremely proud of what Element and its outstanding team have delivered. The business has been bold in its ambition, delivered impressive organic growth, and has been clinical in its acquisition strategy - allowing it to significantly expand its expertise for over 50,000 customers worldwide. It is now an undisputed heavyweight in Testing, Inspection and Certification, and we wish the team of 7,000 people continued success in the future", said Chris Busby, partner at Bridgepoint.
Uwe Krueger, Temasek’s Head Industrials, Business Services, Energy & Resources; and Head, Europe, Middle East & Africa said: "We are pleased to continue our relationship with Element as it works with its customers and explores greater opportunities to be part of their decarbonisation and sustainability journeys. As a leading TIC business, Element is at the forefront of enabling innovative solutions across various industries."
Element was advised by Bank of America Securities, Goldman Sachs and Rothschild & Co (M&A), A&O (legal), EY (finance and tax), BCG (commercial), DLA, Jamieson and PwC (management advisors).
For further information, please contact:
Finsbury Glover Hering: T: 020 7251 3801 / E: Element-LON@finsbury.com
Bridgepoint Group: T: 0207 034 3555
The Element Materials Technology Group is one of the world’s leading global providers of testing, inspection, and certification services for a diverse range of products, materials, and technologies in advanced industrial supply chains where failure in use is not an option. Headquartered in London, UK, Element’s c.7,000 scientists, engineers, and technologists, working in our global network of over 200 laboratories, support customers from early R&D, through complex regulatory approvals, and into production ensuring their products are safe and sustainable, and achieve market access.
In 2021, Element set out its new, industry leading environmental commitments, adopting science-based targets and committing to net zero emissions across its entire global business by 2035. These environmental commitments follow Element’s achievement of the highest ESG ranking in the testing, inspection and certification industry from Sustainalytics, a global leader in ESG research and data.
Temasek is a global investment company with a net portfolio value of S$381 billion (€241b, £206b) as at 31 March 2021. Headquartered in Singapore, it has 13 offices in nine countries around the world. The Temasek Charter defines Temasek’s three roles as an Investor, Institution, and Steward, which shape its ethos to do well, do right, and do good. As a provider of catalytic capital, it seeks to enable solutions to key global challenges. With sustainability at the core of all Temasek does, it actively seeks sustainable solutions to address present and future challenges, as it captures investible opportunities to bring about a sustainable future for all. For more information on Temasek, please visit www.temasek.com.sg