Latest news with #AppliedTechnicalServices
Cision Canada
a day ago
- Business
- Cision Canada
SGS has signed an agreement to acquire ATS, a major American player
BLOOMFIELD, NJ, July 2, 2025 /CNW/ - SGS, the world's leading testing, inspection and certification company, announces that it has signed a definitive agreement to acquire the entire issued share capital of Applied Technical Services ("ATS"), a leading provider of specialized Testing, Inspection, Calibration and Forensics solutions in North America. ATS is expected to bring USD 460 million of sales and USD 95 million of EBITDA before synergies in 2026. With close to 60 years of history, ATS is a resilient and diversified pure US player with a strong brand and service culture. It delivers solutions and services in regulated and high-growth end-markets such as Manufacturing, Aerospace & Defense, Power Generation & Distribution, and Insurance. Powered by a team of 2,100 skilled professionals and a network of 85 state-of-the-art facilities strategically located across the United States, ATS serves a large base of blue-chip clients across a broad range of industries. The proposed transaction will strengthen SGS's position in the US with total annual sales to exceed USD 1.5 billion in North America. This marks a major milestone in SGS's ambition to more than double its sales in the region by 2027 compared to 2023. It will also allow SGS to expand into new attractive segments. The complementarity of the offers and customers opens significant opportunities for cross-selling. This transaction is valued at USD 1,325 million (Enterprise Value on a debt-free, cash-free basis)* corresponding to a multiple of 11.2 times 2026 EBITDA including run rate synergies. A small portion of less than USD 100 million will be paid in SGS shares to some shareholders and key employees subject to a three-year lock up period. The remainder of the purchase price will be financed through cash and debt while maintaining the leverage around 2 times. EBITDA synergies of at least USD 30 million per year are expected on a run rate basis within 3 years of closing, driven by cost rationalization and cross-selling opportunities. The acquisition will be accretive on the EPS from the first year. It is also expected to enhance SGS's revenue growth and adjusted operating income margin, supported by the synergies. The transaction is subject to customary closing conditions and is expected to close by late 2025 / early 2026. Géraldine Picaud, CEO of SGS, commented: "We are very happy to have signed the acquisition of Applied Technical Services. This transaction will significantly accelerate the execution of Strategy 27 by strengthening our presence in North America. ATS has exceptional teams, highly skilled with strong integrity and customer-oriented culture. By combining our forces in the US, we will deliver sustainable growth and synergies, and create lasting value for our shareholders. We are incredibly excited about the significant opportunities ahead." * Before IFRS 16 Adjustment on operating leases of USD 65 million ABOUT SGS SGS is the world's leading Testing, Inspection and Certification company. We operate a network of over 2,500 laboratories and business facilities across 115 countries, supported by a team of 99,500 dedicated professionals. With over 145 years of service excellence, we combine the precision and accuracy that define Swiss companies to help organizations achieve the highest standards of quality, compliance and sustainability. Our brand promise – when you need to be sure – underscores our commitment to trust, integrity and reliability, enabling businesses to thrive with confidence. We proudly deliver our expert services through the SGS name and trusted specialized brands, including Brightsight, Bluesign, Maine Pointe and Nutrasource. SGS is publicly traded on the SIX Swiss Exchange under the ticker symbol SGSN (ISIN CH1256740924, Reuters SGSN.S, Bloomberg SGSN:SW). For more information visit
Yahoo
a day ago
- Business
- Yahoo
Odyssey Investment Partners to Sell Applied Technical Services to SGS for $1.325 Billion
NEW YORK, July 02, 2025--(BUSINESS WIRE)--Odyssey Investment Partners, LLC ("Odyssey") announced today that it has entered into a definitive agreement to sell its portfolio company Applied Technical Services, Inc. ("ATS" or the "Company"), a leading provider of specialized Testing, Inspection, Calibration and Forensic Consulting solutions in North America, to SGS, the world's leading Testing, Inspection and Certification company, in a transaction valued at $1.325 billion. ATS has a nearly 60-year history of providing critical solutions to clients across a diverse set of large and stable end markets including manufacturing, power generation, food and beverage, chemicals, aerospace, life sciences, and defense. Its market-leading service offerings include materials testing, environmental simulation, chemical analysis, calibration, non-destructive inspection, and forensic consulting. ATS is headquartered in Marietta, Georgia and employs approximately 2,100 team members in over 85 locations across the United States. ATS has undergone a dramatic transformation since it was acquired by an Odyssey fund in 2020. During this time, the Company completed nearly 40 acquisitions, through which it added considerable scale and diversified its service offerings and end markets. Further, Odyssey constructed a world-class executive team that has driven the Company forward and built out a centralized corporate structure that has enhanced efficiency across ATS's footprint. Jonathan Place, a Managing Principal at Odyssey, said, "We are very proud of our highly successful investment in ATS. In partnership with the management team, we have built an unparalleled North American business in terms of scale and diversity, and one that is regarded by its customers as a best-in-class service provider. As a result of our many accomplishments, ATS is well positioned for continued long-term growth and strong performance, and has attracted the interest of the global leader, which envisions it as a critical piece in achieving its considerable ambitions in North America. In addition, the strength and size of the SGS network will provide greater opportunities for ATS to expand its services to new geographies. We are grateful to the management team for their hard work and dedication and wish all of ATS's employees continued success as part of SGS." ATS CEO Mike McIlwain added, "Odyssey has been an exceptional partner to ATS over the past four years. Under its ownership, our business achieved unprecedented growth as a result of the team's vision, industry experience, and the considerable financial and strategic resources they made available to us. I want to thank the entire ATS team for their tireless efforts and commitment to realizing this vision. Together with Odyssey, we've built upon our strong brand and service culture, which has further strengthened our loyal customer relationships. As we move on to a new chapter, we thank Odyssey for our collaboration, the benefits of which will be felt for years to come." Completion of the transaction, which is expected by the end of 2025, is subject to customary closing conditions. Houlihan Lokey is serving as lead financial advisor with Rothschild & Co. as co-financial advisor, and Latham & Watkins LLP is serving as legal counsel to Odyssey. About Odyssey Investment Partners Odyssey Investment Partners is a leading private equity investment firm with more than a 25-year history of partnering with skilled managers and using its buy, build and integrate approach to transform middle-market companies into more efficient and diversified businesses with strong growth profiles. Odyssey makes primarily majority-controlled investments in industrial and business services sectors with a long-term positive outlook and favorable secular trends. For further information about Odyssey, please visit View source version on Contacts Mark Semer / Grace CartwrightGasthalter & Co.(212) 257-4170odyssey@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
