Positive outlook: stabilizing

macroeconomic conditions
drive transactions in TICC
SPOT ON | TESTING, INSPECTION, CERTIFICATION & COMPLIANCE | JANUARY 2024

MAR K ET S U M M ARY
“A combination of stabilizing macroeconomic
conditions, declining inflation rates and
Key insights
anticipated decreasing interest rates has We look at the current landscape for the
resulted in elevated M&A activity overall global TICC sector and the recent trends
and a sharp increase in deals in the TICC impacting M&A activity.
sector. We expect high levels of M&A
to continue in 2024.”
02
ARJEN KOSTELIJK
TICC SPECIALIST, OAKLINS

IN TERVIEW

Focus on Celnor
We spoke with Simon Parrington, CEO of
Celnor (backed by private equity firm Inflexion),
regarding the company’s buy-and-build strategy.

04

CAS E STU DY

Deal overview
Oaklins Italy acted as the co-financial advisor
to RINA S.p.A. for its minority stake sale to
Fondo Italiano d’Investimento.

10
 Market trends
After a period of NTM EBITDA in February to 9.5x NTM environment services. After Celnor’s
macroeconomic uncertainty EBITDA in November. In December, incorporation by private equity firm
however, the NTM EBITDA multiple Inflexion in October 2023, the company
and declining valuation levels
showed an upward trend, and currently conducted six acquisitions in the
for listed TICC companies, stands at around 10.4x. TICC space: APEC Environmental, a
we observed a significant UK-based provider of asbestos testing
increase in global M&A activity As is happening in many other areas, and environmental consultancy services
and valuation levels in the last environmental, social and governance for a wide range of industries;
(ESG) is becoming increasingly important Brownfield Solutions, a UK-based
quarter of 2023.
in the TICC sector, driven by stringent provider of geotechnical and
regulations and increasing social environmental consultancy services;
awareness. Both private equity and MATtest Site Services, a UK-based
The general M&A landscape witnessed strategic investors are leveraging the provider of geotechnical laboratory and
a noteworthy transformation in the ESG trend through (platform) acquisitions site testing services for the construction
last quarter of 2023, characterized by in the fragmented and fast-growing industry; Vintec Laboratories, a
the stabilization of macroeconomic market for environmental TICC services. UK-based provider of asbestos testing,
conditions. Declining inflation rates Environmental consultancy, certification surveying and monitoring services;
and anticipated decreasing interest and compliance services in particular are Ground Investigation and Piling,
rates also resulted in an increase gaining in popularity. Examples of recent a UK-based provider of geotechnical and
in M&A activity in the TICC market. transactions include: the acquisition geoenvironmental laboratory testing and
Looking at the period from September of Civil & Environmental Consultants, consultancy services for the building and
to December 2023, the number of a US-based provider of environmental construction industries; and Riverside
transactions in the global TICC market consultancy services for a wide range Environmental, a UK-based provider of
was well above the monthly average of of industries, by Alliance Technical asbestos, water hygiene & legionella,
approximately 12 transactions that has Group; the acquisition of Planet Mark, noise & vibration, air and environmental
lasted since January 2020. This high a UK-based provider of environmental monitoring consultancy services for a
level is expected to continue in 2024. certification and compliance services wide range of industries.
for a wide range of industries, by
Given the regulatory and recurring Alcumus Group; and the acquisition of Simon Parrington, Celnor’s CEO,
nature of TICC services, the sector Aspect Ecology, a UK-based provider of highlights that these acquisitions
remains very popular with private equity environmental consultancy services for align with the company’s buy-and-
firms. As of December, the LTM M&A development sites, by APEM. Below, we build strategy, focusing on the
activity of private equity investors in the provide details of more deals from the geoenvironmental, safety & compliance,
global TICC sector had increased, and end of 2023. built environment and life sciences
approximately 75% of all TICC deals industries. Read our interview with
involve private equity on the buy-side. We also take a look at Celnor Group, Simon to find out more regarding
Throughout 2023, the valuation levels a broad-based testing and inspection Celnor’s strategy and ambitions.
for listed TICC companies showed a business covering geoenvironmental,
declining trend, decreasing from 11.5x safety & compliance, and built

OAKLINS – Spot On · Testing, Inspection, Certification & Compliance · January 2024 2

 M ar ke t t re n d s

Monthly number of deals in the TICC sector split by buyer type — 2023

28 27 12.4%
12.4%
24 5
22 22 24.8%
3 7 24.8%
3 3 18
9 1 15
14 14 16
12 12 1 Average
13 11 1
10 17 of 12 deals
1 13 1 1
1 per month
6 10 13
12 8 13
8 8
6 5 7
4 3 3 3 62.8%
1 2
62.8%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2023

Strategic PE-backed add-on PE platform

Strategic PE-backed add-on Strategic
PE-platform PE-backed add-on PE platform

Acquisitions as buyer

12 9 6 6 6 6 6 5 5 4

Source: Oaklins analysis

Geographical distribution of buyers and targets — 2023

7.8%
3.7% 7.8%

39.6% 42.2%
42.2%

Buyer origin Target origin

56.7% 50.0%
50.0%

p Oct Nov Dec Jan Feb

Americas Mar EMEA Apr APAC May Jun Jul Aug
5 1
Americas 4
EMEA 9
APAC 6 1
Americas 12
EMEA 8
APAC 4 5 3 3
8 4 7 7 13 8 9 11 13 6 10 8
1 2 0 3 3 1 3 3 1 1 1 1 analysis
Source: Oaklins
5 1 4 9 6 1 12 8 4 5 3 3

OAKLINS – Spot On · Testing, Inspection, Certification & Compliance · January 2024 3

Interview
What is Celnor and what does it stand for? How do you integrate acquisitions?

Celnor Group is a broad-based testing Continuity of leadership in each

and inspection business covering business is very important, so ideally
geoenvironmental, safety & compliance, when we buy a company the existing
and built environment services. The management team will stay. If not, then
group was founded in 2023 and is a strong succession plan is essential, as
backed by private equity firm Inflexion, member companies have a good level
which has industry-leading expertise of autonomy. I believe the best people
in the TICC market. Celnor is focused to run the business are the management
on entrepreneurialism, so we provide team within it, so long as they meet
capital and central support, while Celnor’s high standards for safety,
allowing our management teams to quality control and corporate values.
run the individual companies, which
therefore keep their independence. We work with the management team
Our aim is to harness the benefits of a to develop a growth plan within a few
bigger business while maintaining the months of joining Celnor. The plan
agility and customer service of a smaller is based on an analysis of emerging
business. So far, the group includes eight trends in the company’s particular
companies, but we are in negotiations to market, and often focuses on matching
acquire several more. future customer needs with innovative
technologies that can support those
What is your M&A strategy and criteria needs. Once the growth plan is agreed,
for selecting acquisitions? it is then used to develop a medium-term
strategy.
We intend to grow the three existing
divisions (geoenvironmental, safety Alongside the strategic planning SIMON
& compliance, built environment) and process, we provide support in key areas
add a fourth for life sciences. We are such as HR, marketing and procurement
PARRINGTON
primarily focused on the UK, Europe and to allow our member companies to focus CEO of Celnor Group
North America, and all our acquisitions on achieving the agreed goals.
must be in the TICC sector. While we
consider companies of all shapes and What is the acquisition you are most
sizes, quality standards and customer proud of?
service are key, alongside the capability
of the management team. We want to buy My biggest pride is in having created a
companies that have a strong culture, group of companies that share the same
are committed to quality and service, and vision and values. Fit is hugely important
demonstrate a desire to grow. when we are buying businesses, so I
am really proud of the fact that every
In order to achieve this, and in business we have bought so far is true
consideration of the different situation to our vision of Celnor. I think Celnor
of each owner, we are able to be is a very attractive long-term home for
more flexible than others in how we entrepreneurial businesses in this sector,
structure deals, including taking partial where they can flourish and feel they
stakes, and offering earn-outs to deliver belong to something worthwhile.
future upside, alongside 100% cash
considerations.

OAKLINS – Spot On · Testing, Inspection, Certification & Compliance · January 2024 4

Overview of relevant
transactions
An overview of TICC transactions between September and December 2023

1. FOOD AND ENVIRONMENTAL inspection, compliance, auditing and Analytical, a US-based environmental
verification services for the animal testing laboratory specializing in
– In December 2023, Alliance Technical health, public health, food safety air analysis, hazardous waste and
Group, a US-based provider of source and animal welfare industries, for an stormwater, for an undisclosed amount
testing, emission monitoring and undisclosed amount – In November 2023, Alliance Technical
analytical services, acquired the air – In November 2023, Celnor, a Group, a US-based provider of source
testing operations of Civil UK-based provider of testing testing, emission monitoring and
& Environmental Consultants, a and inspection services for the analytical services, acquired Summit
US-based provider of environmental geoenvironmental, safety & Environmental Technologies, a
consultancy services for a wide range compliance, built environment and US-based environmental testing
of industries, for an undisclosed amount life sciences industries, acquired laboratory specializing in
– In December 2023, Alliance Brownfield Solutions, a UK-based manufacturing facilities, waste
Technical Group, a US-based provider of geotechnical and disposal, paper mills and wastewater,
provider of source testing, emission environmental consultancy services, for an undisclosed amount
monitoring and analytical services, for an undisclosed amount – In November 2023, Swire Renewable
acquired Chemtech Consulting – In November 2023, GBA Group, a Energy, a UK-based provider of
Group, a US-based provider of Germany-based provider of laboratory renewable energy inspection,
laboratory testing services for the testing and consultancy services for repair and maintenance services for
identification and assessment of the environmental, food, consumer wind turbine manufacturers, wind
environmental contaminates, for an goods and pharmaceutical industries, farm owners and the renewable
undisclosed amount acquired Eureka Analytical Services, energy supply chain, acquired WPS
– In December 2023, Eurofins Scientific, an India-based provider of testing, Sweden, a Sweden-based provider
a Luxembourg-based provider of inspection and auditing services for of wind turbine inspection, repair
testing, inspection and certification the food, agricultural commodities, and maintenance services, for an
services for the food, environmental nutraceutical, pharmaceutical and undisclosed amount
and pharmaceutical industries, environmental industries, for an – In November 2023, SOCOTEC, a
acquired the crop science activities of undisclosed amount France-based provider of testing,
SGS, a Switzerland-based provider of – In November 2023, Alliance Technical inspection and certification services
auditing, testing, certification, quality Group, a US-based provider of source for the construction, infrastructure
assurance, technical consultancy and testing, emission monitoring and and environmental industries,
training services for a wide range of analytical services, acquired Chester acquired 40SEVEN, a UK-based
industries, for an undisclosed amount LabNet, a US-based environmental provider of land and utility surveying
– In December 2023, Celnor, a UK-based testing laboratory specializing in services for the construction, energy,
provider of testing and inspection inorganic air quality analysis, for an infrastructure and water industries, for
services for the geoenvironmental, undisclosed amount an undisclosed amount
safety & compliance, built environment – In November 2023, Alliance Technical – In November 2023, SOCOTEC, a
and life sciences industries, acquired Group, a US-based provider of France-based provider of testing,
APEC Environmental, a UK-based source testing, emission monitoring inspection and certification services
provider of asbestos testing and and analytical services, acquired for the construction, infrastructure and
environmental consultancy services Orange Coast Analytical, a US-based environmental industries, acquired
for a wide range of industries, for an environmental testing laboratory Integrated Environmental Technology
undisclosed amount for drinking water, ground water, Group, a UK-based provider of
– In December 2023, Phenna wastewater and soil quality, for an monitoring and measuring services for
Group, a UK-based provider of undisclosed amount sewers, rivers and wastewater, for an
testing, inspection, certification – In November 2023, Alliance Technical undisclosed amount
and compliance services for a wide Group, a US-based provider of source – In October 2023, Normec Group, a
range of industries, acquired Eville & testing, emission monitoring and Netherlands-based provider of testing,
Jones Group, a UK-based provider of analytical services, acquired Fremont inspection and certification services for

OAKLINS – Spot On · Testing, Inspection, Certification & Compliance · January 2024 5

 Ov er v iew of r elevan t tr ans a c t i o n s

the food, life safety and environmental safety & compliance, built environment 2. BUILDING, INDUSTRIAL AND
industries, acquired Latis Scientific and life sciences industries, acquired PRODUCTS
and Derwentside Environmental Ground Investigation and Piling, a
Testing Services, a UK-based provider UK-based provider of geotechnical and – In December 2023, Apave, a France-
of environmental testing services for geoenvironmental laboratory testing based provider of testing, inspection,
water quality, soil and waste, for an and consultancy services for the certification and compliance services
undisclosed amount building and construction industries, for a wide range of industries,
– In October 2023, Alcumus Group, a for an undisclosed amount acquired Lonestar Technical Services,
UK-based provider of health, safety – In October 2023, Celnor, a UK-based a UAE-based provider of testing,
and environmental risk management provider of testing and inspection inspection and engineering services
services, acquired Planet Mark, a services for the geoenvironmental, for the chemistry, construction, food,
UK-based provider of environmental safety & compliance, built environment environmental and building industries,
certification and compliance services and life sciences industries, acquired for an undisclosed amount
for a wide range of industries, for an Riverside Environmental, a UK-based – In December 2023, Phenna Group,
undisclosed amount provider of asbestos, water hygiene a UK-based provider of testing,
– In October 2023, Eurofins Scientific, a & legionella, noise & vibration, air and inspection, certification and
Luxembourg-based provider of testing, environmental monitoring consultancy compliance services for a wide
inspection and certification services services for a wide range of industries, range of industries, acquired EMC
for the food, environmental and for an undisclosed amount Technologies, an Australia-based
pharmaceutical industries, acquired – In October 2023, Inflexion, a provider of testing and product
ARS PROBATA, a Germany-based UK-based private equity firm, certification services for the electrical
provider of certification and auditing incorporated Celnor, a UK-based industry, for an undisclosed amount
services for the food industry, for an provider of testing and inspection – In December 2023, Aldinger, a
undisclosed amount services for the geoenvironmental, US-based provider of calibration
– In October 2023, APEM, a UK- safety & compliance, built environment services for test and measurement
based provider of environmental and life sciences industries equipment for a wide range of
and geospatial consultancy services, – In October 2023, Eurofins Scientific, industries, acquired Instrument
acquired Aspect Ecology, a UK-based a Luxembourg-based provider of Technologies, a US-based provider
provider of environmental consultancy testing, inspection and certification of instrument calibration services
services for development sites, for an services for the food, environmental for a wide range of industries, for an
undisclosed amount and pharmaceutical industries, acquired undisclosed amount
– In October 2023, Celnor, a UK-based the microbiology laboratory and food – In December 2023, BES Group, a
provider of testing and inspection consultancy departments of WFC, a UK-based provider of testing,
services for the geoenvironmental, Netherlands-based research laboratory inspection, certification and asset
safety & compliance, built environment specializing in food microbiology, for reliability services for the engineering
and life sciences industries, acquired an undisclosed amount industry, acquired Inspire Structures,
Vintec Laboratories, a UK-based – In September 2023, DroneBase, a UK-based provider of inspection
provider of asbestos testing, surveying a US-based provider of aerial data services for the infrastructure industry,
and monitoring services, for an and drone inspection services for for an undisclosed amount
undisclosed amount high-value infrastructure, acquired – In December 2023, Infraneo, a
– In October 2023, Celnor, a UK-based Heliolytics, a Canada-based provider France-based provider of testing,
provider of testing and inspection of solar farm inspections, for an inspection and engineering services
services for the geoenvironmental, undisclosed amount focusing on water mains, sewage

OAKLINS – Spot On · Testing, Inspection, Certification & Compliance · January 2024 6

 Ov er v iew of r elevan t tr ans a c t i o n s

systems, bridges, power plants and environmental industries, acquired industry, for an undisclosed amount
public buildings, acquired Technipipe, SLS Consulting, a US-based provider – In November 2023, Macquarie Group,
a France-based provider of inspection, of consultancy services for building an Australia-based private equity firm,
monitoring, maintenance, control code compliance, fire protection acquired Camin Cargo Control, a
and repair services for pipelines engineering and accessibility solutions US-based provider of testing,
specializing in the oil & gas industry, in buildings, for an undisclosed amount inspection and additive treatment
for an undisclosed amount – In November 2023, Portobello Capital, services for the oil & gas and
– In December 2023, Jensen Hughes, a Spain-based private equity firm, petrochemical industries, for an
a US-based provider of safety, security acquired Controlauto, a Portugal- undisclosed amount
and risk-based engineering services, based provider of vehicle inspection – In November 2023, Phenna
acquired Warringtonfire Australia, an services for the automotive industry, Group, a UK-based provider of
Australia-based provider of fire testing, for an undisclosed amount testing, inspection, certification and
assessment and certification services, – In November 2023, Pye-Barker compliance services for a wide range
for an undisclosed amount Fire & Safety, a US-based provider of industries, acquired Australian
– In December 2023, TÜV Austria of fire safety and security systems Soil & Concrete Testing, an Australia-
Holding, an Austria-based provider and services, acquired American based provider of soil and concrete
of technical safety, quality and Fire Sprinkler, a US-based provider testing services to the construction
environmental protection services, of inspection, installation and and infrastructure industries, for an
acquired IVT Inspections, a Belgium- maintenance services for fire sprinkler undisclosed amount
based provider of inspection systems, for an undisclosed amount – In November 2023, Element
services for equipment, machinery – In November 2023, Balance Point Materials Technology, a UK-based
and production facilities, for an Capital Advisors, a US-based private provider of material testing, product
undisclosed amount equity firm, acquired CraneTech, a qualification testing, failure analysis
– In December 2023, Bureau Veritas, US-based provider of crane inspection, and consultancy services for a wide
a France-based provider of testing, maintenance and manufacturing range of industries, acquired Filton
inspection and certification services services, for an undisclosed amount Systems Engineering, a UK-based
for a wide range of industries, – In November 2023, Partners Group, provider of engineering, testing and
acquired BCA Certifiers, an Australia- a Switzerland-based private equity certification services for fuel, air,
based provider of certification and firm, acquired ROSEN Group, a hydraulic, inerting and engine systems,
consultancy services for the building Switzerland-based provider of for an undisclosed amount
and construction industries, for an pipeline inspection services and – In November 2023, Greenbelt Capital
undisclosed amount a manufacturer of measurement Partners, a US-based private equity
– In December 2023, Sansidor, a and inspection equipment, for an firm, acquired Saber Power Services,
Netherlands-based provider of undisclosed amount a US-based provider of installation,
testing, inspection and related – In November 2023, SOCOTEC, a testing, design and maintenance
services focusing on water safety, France-based provider of testing, services for medium- and high-voltage
infection prevention, boilers, burners, inspection and certification services electrical infrastructure, for an
climate control systems, fire safety, for the construction, infrastructure and undisclosed amount
air quality and electrical installations, environmental industries, acquired – In November 2023, Phenna Group,
acquired Polmai Brandbeveiliging, Hutton + Rostron, a UK-based provider a UK-based provider of testing,
a Netherlands-based provider of of inspection services specializing in inspection, certification and
inspection and maintenance services buildings, building materials and building compliance services for a wide range
and products specializing in fire, occupancy, for an undisclosed amount of industries, acquired ACI Reports, a
rescue and safety equipment for the – In November 2023, Neos Partners, a UK-based provider of air-conditioning
marine and building industries, for an US-based private equity firm, acquired inspections and energy performance
undisclosed amount RMS Energy, a US-based provider of certificates, for an undisclosed amount
– In November 2023, Bureau Veritas, installation, testing and maintenance – In October 2023, Electrical Test
a France-based provider of testing, services for electrical equipment, for Instruments, a US-based provider of
inspection and certification services for an undisclosed amount calibration, repair and sale services
a wide range of industries, acquired – In November 2023, Celnor, a for test and measurement equipment,
Hendry Group Pty, an Australia-based UK-based provider of testing acquired Accuserve, a US-based
provider of surveying and safety and inspection services for the provider of calibration and repair
measurement services for the building geoenvironmental, safety & services for test and measurement
industry, for an undisclosed amount compliance, built environment and life equipment, for an undisclosed amount
– In November 2023, SOCOTEC, a sciences industries, acquired MATtest – In October 2023, RMA, a US-based
France-based provider of testing, Site Services, a UK-based provider provider of technology-enabled
inspection and certification services of geotechnical laboratory and site testing, inspection and certification
for the construction, infrastructure and testing services for the construction services for the construction, chemical

OAKLINS – Spot On · Testing, Inspection, Certification & Compliance · January 2024 7

 Ov er v iew of r elevan t tr ans a c t i o n s

and energy industries, acquired Big for electrical power systems, for a Services, a US-based provider of
Apple Group, a US-based provider consideration of US$126 million testing, inspection, consulting and
of testing, inspection and monitoring – In October 2023, Encino engineering services for a wide
services for the construction industry, Environmental Services, a US-based range of industries, acquired Phoenix
for an undisclosed amount provider of emission monitoring National Laboratories, a US-based
– In October 2023, Kingswood Capital and mitigation services to energy provider of non-destructive testing,
Management, a US-based private companies, acquired Lemos Labs, a inspection and engineering services
equity firm, acquired Covenant US-based provider of air quality and for a wide range of industries, for an
Testing Technologies, a US-based source emission testing services, for undisclosed amount
provider of flowback and well testing, an undisclosed amount – In October 2023, Operational
sand management and production – In October 2023, TPG Rise Climate, Solutions, a UK-based provider of
optimization services for the oil & gas a US-based private equity firm, drone defense, specialist equipment
industry, for an undisclosed amount acquired AmSpec Services, a and consultancy services in support
– In October 2023, Columbia River US-based provider of testing, of the defense, aerospace and
Partners, a US-based private equity inspection and certification services security industries, acquired Nexus
firm, acquired the US powertrain for the oil & gas and petrochemical Nine, a UK-based provider of
testing activities of SGS, a industries, for a consideration of advanced uncrewed aircraft system
Switzerland-based provider of US$946 million testing and evaluation services, for an
auditing, testing, certification, quality – In October 2023, Indutrade, a undisclosed amount
assurance, technical consultancy and Sweden-based manufacturer of – In October 2023, TÜV Rheinland, a
training services for a wide range of mechanical equipment and tools, Germany-based provider of testing,
industries, for an undisclosed amount acquired Powerpoint Engineering, inspection and certification services
– In October 2023, Acuren, a US-based an Ireland-based provider of for a wide range of industries, acquired
provider of industrial testing, electrical testing and monitoring Burotec, a Spain-based provider of
inspection, engineering and rope services and equipment for high- and consulting, inspection, engineering and
access integrated services, acquired medium-voltage applications, for an security services for a wide range of
Alloyweld Inspection, a US-based undisclosed amount industries, for an undisclosed amount
provider of non-destructive testing, – In October 2023, NMi Certin, a – In September 2023, White Lab, an
welding and metal finishing services Netherlands-based provider of testing, Italy-based provider of inspection,
for the aerospace, electronics, medical verification, calibration and certification verification, analysis and certification
devices and forensics industries, for an services for metrological instruments, services for the water & environment,
undisclosed amount acquired Avon Dynamic Calibration, food, medical devices and consumer
– In October 2023, American Pacific a UK-based provider of calibration and goods industries, acquired Centro
Group, a US-based private equity dimensional measurement services Triveneto Ricerche, an Italy-based
firm, acquired Spark Power Group, a for a wide range of industries, for an provider of laboratory analysis services
Canada-based provider of inspection, undisclosed amount for the civil engineering industry, for an
maintenance and engineering services – In October 2023, Applied Technical undisclosed amount

OAKLINS – Spot On · Testing, Inspection, Certification & Compliance · January 2024 8

 Ov er v iew of r elevan t tr ans a c t i o n s

– In September 2023, SOCOTEC, a Group, a UK-based provider of quality assessment, auditing

France-based provider of testing, testing, inspection, certification and and certification services for the
inspection and certification services compliance services for a wide range healthcare, pharmaceutical and
for the construction, infrastructure and of industries, acquired Labwest medical technology industries, for an
environmental industries, acquired Minerals Analysis, an Australia-based undisclosed amount
LMF Formation, a France-based provider of mineral analysis services, – In November 2023, EC Healthcare,
training organization specializing in for an undisclosed amount a Hong Kong-based provider of
the lifting and handling equipment – In September 2023, GBA Group, a medical services for the healthcare
industry, for an undisclosed amount Germany-based provider of laboratory industry, acquired Pangenia, a Hong
– In September 2023, LaunchPad Home testing and consultancy services for Kong-based molecular diagnostics
Group, a US-based provider of home the environmental, food, consumer group providing genetic testing and
inspection and residential services, goods and pharmaceutical industries, research services, for a consideration
acquired TLC Home Inspections, acquired Taklab, a Finland-based of US$15 million
a US-based provider of residential provider of laboratory testing services – In November 2023, Eurofins Scientific,
and ancillary inspection services for asbestos and microbiological a Luxembourg-based provider of
specializing in termites, pests and residential health analysis, for an testing, inspection and certification
mold, for an undisclosed amount undisclosed amount services for the food, environmental
– In September 2023, Writech Industrial – In September 2023, Normec Group, a and pharmaceutical industries,
Services, a UK-based provider of design, Netherlands-based provider of testing, acquired Quasfar, a Colombia-based
manufacturing and related services inspection and certification services for laboratory specializing in physical-
for fire protection systems, acquired the food, life safety and environmental chemical and microbiological analysis
Ideal Fire, an Ireland-based provider industries, acquired Horizon Data for the pharmaceutical, cosmetic
of inspection, maintenance, monitoring Services, a France-based provider and veterinary industries, for an
and installation services for fire safety of non-destructive testing services undisclosed amount
systems, for an undisclosed amount for nuclear power plants, for an – In November 2023, 1MED, a
– In September 2023, Certania, a undisclosed amount Switzerland-based contract research
Germany-based provider of testing, organization providing regulatory and
inspection and certification services clinical services to the pharmaceutical,
focusing on sustainability and health 3. HEALTHCARE biotechnology and medical devices
orientation, acquired Fiatec, a industries, acquired 1Lab, a
Germany-based provider of testing – In December 2023, Phenna Switzerland-based contract research
and certification services for air filters, Group, a UK-based provider of organization providing preclinical
for an undisclosed amount testing, inspection, certification and in vitro testing services, for an
– In September 2023, AmSpec Services, compliance services for a wide range undisclosed amount
a US-based provider of testing, of industries, acquired CEIMIC, a – In October 2023, Forensic Access,
inspection and certification services Brazil-based provider of testing a UK-based provider of forensic
for the oil & gas and petrochemical services for the pharmaceutical, and criminal justice services,
industries, acquired Polaris Marine biotechnology and agricultural acquired Forensic Testing Service,
Inspections, a Netherlands-based industries, for an undisclosed amount a UK-based provider of drug, DNA
provider of inspection and survey – In November 2023, Merieux Equity and alcohol testing services, for an
services for the marine industry, for an Partners, a France-based private undisclosed amount
undisclosed amount equity firm, acquired Labquality, – In October 2023, Microba, an
– In September 2023, Phenna a Finland-based provider of Australia-based provider of

OAKLINS – Spot On · Testing, Inspection, Certification & Compliance · January 2024 9

 Ov er v iew of r elevan t tr ans a c t i o n s

microbiome testing services, acquired – In October 2023, LabCorp, a – In September 2023, GBA Group, a
Invivo Clinical, a UK-based provider US-based provider of gene-based Germany-based provider of laboratory
of microbiome testing services and and esoteric laboratory services, testing and consultancy services for
supplements, for a consideration of acquired the outreach laboratory the environmental, food, consumer
US$13 million activities of Baystate Health, a goods and pharmaceutical industries,
– In October 2023, Mesa Laboratories, US-based healthcare organization, acquired ICCR-Rossdorf, a Germany-
a US-based designer and for an undisclosed amount based contract research organization
manufacturer of life science tools – In October 2023, Spectris, a for the pharmaceutical, (agro)chemical,
and critical quality control solutions, UK-based provider of measurement cosmetics and medical device
acquired the sterilization indicators and analysis equipment, acquired industries, for an undisclosed amount
business and SAL GmbH testing Particle Measuring Systems, a – In September 2023, Lundbeckfonden,
laboratory of GKE-GmbH, a US-based provider of cleanroom a Denmark-based private equity firm,
Germany-based manufacturer of testing and contamination monitoring acquired Ellab, a Denmark-based
medical equipment, specializing in services, for an undisclosed amount provider of validation, monitoring
the development and production – In September 2023, Technical Safety and calibration solutions and
of innovative medical devices, for a Services, a US-based provider of services for the life sciences and
consideration of US$84 million testing, certification, calibration food manufacturing industries, for an
– In October 2023, Labanalysis, an and environmental services for undisclosed amount
Italy-based provider of testing, the industrial, environmental – In September 2023, Cerba
inspection, certification and verification and life sciences industries, Healthcare, a France-based provider
services for the environmental, acquired Controlled Environment of clinical pathology laboratory
pharmaceutical, food and household Management, a US-based provider services, acquired CIRION BioPharma
products industries, acquired Bionos of controlled environment testing, Research, a Canada-based contract
Biotech, a Spain-based provider of validation, certification and calibration research laboratory providing global
efficacy testing for the cosmetic and services for the pharmaceutical and central laboratory services for clinical
food-nutraceutical industries, for an biotechnology industries, for an studies and bioanalytical services, for
undisclosed amount undisclosed amount an undisclosed amount

Case study
Fondo Italiano d’Investimento has d’Investimento operates with synergistic
acquired a minority stake in RINA continuity between direct investments
and fund platforms, providing patient
RINA is a multinational and capital and encouraging aggregation
multidisciplinary group providing processes between companies.
testing, inspection, certification and
engineering services to a wide range The deal involves an injection of up to
of industries, including the marine, EUR 180 million (US$195 million) in
energy & mobility, real estate & capital in the form of equity. RINA parent
infrastructure, and space & defense organization Registro Italiano Navale will
industries, in more than 70 countries. maintain the majority stake, while Fondo
Italiano d’Investimento and other co-
Fondo Italiano d’Investimento is investors will hold a minority stake of up to
Italy’s largest institutional investor in 33% after the transaction. Additionally, the
private capital. The company aims to company's management will hold a stake
combine financial returns with support of about 3.5% in the capital. The capital
for the competitiveness of the Italian injected by Fondo Italiano d’Investimento
industrial system, by investing in quality into RINA is aimed at providing additional
companies with high growth potential support for the company's growth, both Oaklins Italy acted as the co-financial
in strategic sectors of excellence for organically and inorganically, as well as its advisor to RINA in this transaction.
the Italian economy. Fondo Italiano international expansion.

OAKLINS – Spot On · Testing, Inspection, Certification & Compliance · January 2024 10

 Market multiples and
valuation trends
CURRENT TRADING MULTIPLES (EV/EBITDA) OF LISTED TICC COMPANIES

18.0x

14.4x
12.9x 13.0x
11.7x 11.5x 11.7x 12.1x 11.7x 12.1x
10.8x 11.1x 11.1x
10.1x 10.4x 10.3x
10.6x
10.2x
9.2x
7.9x 7.5x
7.1x

EV/EBITDA LTM EV/EBITDA NTM LTM median (11.5x) NTM median (10.4x)

Source: S&P Capital IQ, as at 31 December 2023

HISTORICAL VALUATIONS BETWEEN JANUARY AND DECEMBER 2023 (EV/EBITDA NTM)

12.0x

11.5x

11.0x

10.5x
10.4x
median multiple
10.0x

9.5x

9.0x
Jan-23 Feb-23 Mar-23 Apr-23 Sep-23 Oct-23 Nov-23 Dec-23 Sep-23 Oct-23 Nov-23 Dec-23
Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23

Source: S&P Capital IQ, as at 31 December 2023

Name
Jan-23 10.45299
Jan-23 OAKLINS – Spot On · Testing, Inspection, Certification & Compliance · January 2024
10.69375 11

Jan-23 10.60207
Jan-23 10.74618
Our track record
A selection of Oaklins’ experience in the TICC industry.

OAKLINS – Spot On · Testing, Inspection, Certification & Compliance · January 2024 12

 A bou t O a k l i n s

Deep local roots,

global commitment
Oaklins brings you opportunities from across the world and
we meet you with our expertise wherever you are

OAKLINS OFFERS A
COMPREHENSIVE RANGE ARJEN KOSTELIJK
OF SERVICES
Partner
– M&A advisory (buy- and sell-side) Amsterdam, Netherlands
T: +31 61397 9718
– Growth equity and equity capital
markets advisory
– Debt advisory
– Corporate finance services
Arjen leads Oaklins’ testing, inspection, certification & compliance
(TICC) team and is a partner at Oaklins Netherlands. He has advised
Testing, inspection, certification multiple clients in the TICC sector, including on the sales of Kalsbeek
& compliance (TICC) is one of and Advipro to Normec, Xendo Drug Development to QPS, Omegan,
our focus areas. Combining Insite Security and the asbestos division of Sansidor to Eurofins,
comprehensive sector knowledge KOAC-NPC and Shield Group to Kiwa, and CAG Groep to Gate Invest
with global execution has led and subsequently to SOCOTEC. He has also established high-level
Oaklins to become one of the most contacts with market consolidators, such as Bureau Veritas, SGS,
experienced M&A advisors in the Eurofins, Normec, Applus+ and Kiwa.
TICC sector, with a large network of
relevant market players worldwide.
This results in the best possible
merger, acquisition and divestment
opportunities for TICC companies.

If mergers, acquisitions, or divestitures

of businesses or business units
are part of your strategy, we would
welcome the opportunity to exchange
ideas with you.

United by a strong belief that we can achieve the extraordinary. Oaklins is a

global team of 800+ financial advisory professionals in 40 countries providing
M&A, growth equity, ECM, debt advisory and corporate finance services to
support entrepreneurs, corporates and investors in reaching their goals.
13
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Oaklins is the collective trade name of independent member firms affiliated with Oaklins International Inc.
For details of the nature of affiliation please refer to www.oaklins.com/legal. 14