Charterhouse to float Intertek

As prospects for the UK equity markets brighten, Intertek is planning to list in mid-2002.

Charterhouse Development Capital, the UK private equity firm, has confirmed that it plans to list its UK-based testing group Intertek Testing Services. The announcement is the first of what is expected to be a number of official listing announcements this year as confidence begins to re-emerge in the IPO arena.

Goldman Sachs International and Schroder Salomon Smith Barney have been appointed joint global coordinators for the offering, which according to an Intertek spokesman, will take place “in the second or third quarter of this year”.

Charterhouse acquired Intertek, originally named Inchcape Testing Services, from Inchcape in 1996 for a consideration of £380m. No prognosis has been made as to how much the listing is expected to fetch, but the floatation is likely to value the firm somewhere in the region of £750m. The proceeds will be used to pay off company debt as well as providing Charterhouse with a strong exit return.

Intertek currently employs over 10,300 people across 99 countries and is headquartered in London, United Kingdom. For the 12 months to 30 September 2001, ITS reported revenue of £443m and operating profit before goodwill amortisation and exceptional items of £66.8m.