Intertek, the UK-based testing, inspection, and certification company, reported a rise in first-half adjusted operating profit to £309.7 million, up from £276.3 million a year earlier. The company also kept its 2026 growth and margin outlook unchanged, a signal of stability as its £10.9 billion acquisition by Swedish private equity firm EQT moves closer to completion.
What's driving the profit growth?
Management attributed the improvement to steady demand, price increases, and tight cost control. Clients are spending more on what Intertek calls “risk-based” quality checks, as companies face tougher standards on safety and sustainability. This trend is part of a broader shift where businesses are increasingly outsourcing verification and compliance work to third-party specialists, rather than relying solely on internal teams.
For a company in the middle of a major acquisition, maintaining guidance is often seen as a positive sign. It suggests that the business is performing in line with expectations, which can help reassure both shareholders and the acquirer. Intertek's decision to keep its 2026 targets—mid-single-digit like-for-like revenue growth and stable margins—indicates that management sees no major disruption from the pending ownership change.
What does the EQT deal mean?
EQT, a Stockholm-based private equity firm, agreed to buy Intertek in a deal valued at £10.9 billion. The transaction is one of the largest leveraged buyouts in Europe this year, reflecting a broader wave of private equity activity in the testing and certification sector. These companies are attractive to buyout firms because they generate steady, recurring revenue and often operate in regulated industries where demand is less cyclical.
For Intertek's shareholders, the deal offers a cash exit at a premium to the pre-announcement share price. For EQT, the bet is that Intertek can continue to grow by capitalising on increasing regulatory complexity and the global push for more sustainable products. The deal is still subject to regulatory approvals and shareholder votes, but the company's reaffirmed outlook suggests that the transition is proceeding smoothly.
What it means for investors
For everyday investors, the key takeaway is that Intertek's underlying business remains healthy even as it prepares to change hands. The company's ability to raise prices and control costs in a challenging economic environment is a sign of pricing power, which is often a hallmark of a quality business.
However, once the EQT deal closes, Intertek will likely be delisted from the London Stock Exchange, meaning retail investors will no longer be able to buy or sell the shares on public markets. If you hold Intertek shares, you'll receive the agreed cash consideration, but you won't participate in any future upside (or downside) of the company as a private entity.
For those watching the broader market, this deal is another example of private equity's appetite for UK-listed companies, particularly those with defensive characteristics. Similar trends have been seen in other sectors, such as Arcadis rejecting WSP's bid, showing that dealmaking remains active across industries.
Looking ahead
Investors will be watching for any updates on the regulatory approval process for the EQT deal. The transaction is expected to close later this year or early next year, subject to conditions. In the meantime, Intertek's next set of results will be closely scrutinised to see if the company can maintain its momentum.
For those interested in the broader testing and certification industry, the sector's resilience is worth noting. Companies in this space often benefit from long-term trends like global trade growth, stricter environmental regulations, and increased consumer awareness about product safety. These factors are likely to remain supportive regardless of who owns Intertek.
As the buyout nears, the focus will shift to execution. EQT will need to integrate Intertek into its portfolio and deliver on the growth assumptions that justified the hefty price tag. For now, Intertek's steady performance provides a solid foundation for that transition.
