Investcorp makes 3x on testing business

The Bahrain-headquartered alternatives group has sold Moody International to a trade buyer for $450m.

Bahrain-based Investcorp will make three times its money on the sale of Moody International, a provider of safety consulting and testing to industrial companies. Moody is being acquired by strategic buyer Intertek for £450 million (€522 million; $729 million).

The acquisition price represents an EBITDA multiple of 13.4x based on 2010 earnings.

Moody generated revenues of $476 million in 2010 and before-tax profit of $54 million, said Intertek in a statement. The company had gross assets of $330 million as of the end of 2009, the company added.

The management team, led by chief executive officer Brendon Connolly, holds 19 percent of Moody’s equity, with the remainder being the subject of the sale to Intertek. Connolly will remain in place following the deal.

Investcorp acquired Moody from Close Brothers Private Equity, the mid-market private equity firm now known as CBPE Capital, for $311 million in 2007. Close Brothers had paid $55 million for the business in 2004.

Investcorp’s private equity activity focuses on investments in the mature markets of Western Europe and North America through offices in London and New York. The firm arranges acquisitions that are distributed to its network of high net worth and institutional investors in the Gulf. The firm also manages a number of different funds.

The Bahrain-headquartered firm has five main businesses: private equity, hedge funds, real estate, technology and Gulf growth capital.

The Moody deal is expected to close by the end of April.