Intertek buys energy expert Moody for $730m

Safety testing company Intertek is buying quality and safety services firm Moody International for $730m (£450m) in cash to add energy sector expertise.

Intertek, which also reported forecast-beating full-year profits up 11 per cent, said the acquisition would drive expansion in two key areas, industry services and system certification.

Intertek, which tests a range of products from toys and footwear to computers, said Moody’s system certification business would give it a presence in Asia.

The takeover is expected to materially enhance earnings next year, while generating pre-tax synergies of £6m by the third year.

“Intertek will now have a leading position in providing quality and safety services to the assets, processes and products for the energy market,” said chief executive Wolfhart Hauser.

“The good match between the geographic exposure of the two businesses gives Intertek scale in new countries and the enlarged group a greater presence in the fastest growing regions of the world.”

“It is an important strategic move for Intertek," said Kevin Lapwood at Seymour Pierce, citing the global reach as a key benefit of the acquisition.

Shares in Intertek were up 4.53 percent in morning trading, making it the highest gainer on the FTSE 100.

Intertek, which operates in more than 100 countries and counts as clients the government of Mozambique and companies such as Carrefour, Gap and Unilever, said adjusted pre-tax profit for the year to end-December was £211.9m compared with £191.5m a year earlier.