LONDON: Intertek Group PLC said it has initiated a strategic review to explore separating its operations into two independent, publicly traded companies, as the testing and assurance giant reported better-than-expected first-quarter revenue growth.
The proposed separation would create Intertek Testing & Assurance, a £1.9 billion business focused on consumer products, corporate assurance and health and safety, and Intertek Energy & Infrastructure, a £1.6 billion business covering energy, industry and infrastructure markets. The review will consider either a sale or a tax-efficient demerger, with a decision expected by mid-2027.
Chief Executive Officer André Lacroix said the group had reached “a scale and breadth that could benefit from greater simplification and strategic focus.”
“Given the leading scale positions we have built in our end markets over the years, we believe that two specialist scale global ATIC businesses could be best positioned to accelerate growth and deliver greater value for shareholders,” Lacroix said in a statement.
The announcement came alongside first-quarter results that showed group like-for-like revenue rose 5.4% at constant currency to £828.3 million, exceeding the company’s mid-single digit guidance range.
Consumer Products led the performance with 6.5% growth, while Corporate Assurance posted double-digit gains of 10.8%. Health and Safety rose 5.9%, and Industry and Infrastructure increased 5.5%. The World of Energy division was stable, reporting 0.2% growth.
Intertek reaffirmed its full-year 2026 guidance for mid-single digit like-for-like revenue growth at constant currency, continued margin progression, strong earnings growth and strong free cash flow.
The company said both proposed businesses have different customers, operate in different markets with distinct financial characteristics, and already operate with limited shared costs under Intertek’s decentralized structure.
“A dedicated Intertek Testing & Assurance business would be a global market leader, providing risk-based quality assurance to world-leading brands,” the company said. “A dedicated Intertek Energy & Infrastructure business would be positioned to seize the growth opportunities created by investment in infrastructure, increasing demand for minerals, and the fast-changing global energy system.”
Lacroix said the company would remain focused on executing its AAA growth strategy during the review period.
The company will host an analyst call at 9:30 a.m. UK time.