Tyne crossing firm will be sold

Dec 15 2007 by Iain Laing, The Journal

THE UK’s leading inspection and testing firm has agreed to be bought for £228.6m by private equity firm 3i.

Inspicio, including the former inspection wing of the BSI national standards body, has been weighing up offers since October.

The London company employs 6,500 worldwide and tests commodities such as petroleum, oil and coal for groups including BP and mining company BHP Billiton. It is working on the New Tyne Crossing. Inspicio shares jumped nearly 11% on news of the offer. 3i and the company’s management are buying it through bid vehicle Angus Newco, in which the private equity firm has a majority stake. The offer values the management’s share at £2.5m.

Inspicio chief executive Mark Silver said: “This is a good deal and provides an opportunity for the company to fulfil its potential.” It made pre-tax first half profits of £3.1m on sales of £100.7m.