Key Takeaways
- • EQT is pursuing a leveraged buyout of Intertek Group Plc with an indicative offer of £60 per share, valuing the UK testing and inspection company at approximately £9.2 billion, with a firm offer decision deadline of June 18.
- • Banks are competing to arrange approximately £5 billion in debt financing structured through leveraged loans and high-yield bonds in both euros and US dollars to optimize pricing and access deeper institutional investor liquidity pools.
- • Morgan Stanley, advising EQT on the transaction, is expected to play a central role in the financing package alongside other lenders, positioning the deal within a broader revival of large-cap acquisition financing activity.
- • The proposed multi-tranche financing structure reflects renewed momentum in M&A-related lending as improving market conditions and significant deployable capital encourage sponsors to pursue larger transactions and generate substantial underwriting fee income.
Summary
Private equity firm EQT is advancing a potential leveraged buyout of Intertek Group Plc, a UK-based testing and inspection services provider, with banks competing to arrange approximately £5 billion in acquisition financing. The financing package would be structured through a combination of leveraged loans and high-yield bonds, with issuance planned in both euros and US dollars to optimize pricing and access broader institutional investor bases. The dual-currency approach reflects current market dynamics where demand for higher-yielding credit instruments remains robust among institutional allocators.
EQT has submitted an indicative cash offer of £60 per share for Intertek, which values the company at roughly £9.2 billion enterprise value. The private equity firm has secured an extension through June 18 to finalize its decision on proceeding with a firm offer, during which it will complete remaining due diligence and governance assessments. Morgan Stanley, serving as financial advisor to EQT, is expected to assume a leading role in arranging the debt financing alongside competing lenders.
The transaction underscores a measurable recovery in large-cap acquisition financing activity following an extended slowdown in M&A dealmaking. Improving market conditions, elevated levels of deployable capital among sponsors, and robust institutional demand for credit instruments have collectively encouraged private equity firms to pursue larger, more complex transactions. Investment banks are increasingly competing for mandates on high-profile buyouts, which generate substantial fee income and position arrangers within the growing pipeline of large-cap transactions requiring sophisticated multi-tranche financing structures across leveraged finance and acquisition markets.
EQT has submitted an indicative cash offer of £60 per share for Intertek, which values the company at roughly £9.2 billion enterprise value. The private equity firm has secured an extension through June 18 to finalize its decision on proceeding with a firm offer, during which it will complete remaining due diligence and governance assessments. Morgan Stanley, serving as financial advisor to EQT, is expected to assume a leading role in arranging the debt financing alongside competing lenders.
The transaction underscores a measurable recovery in large-cap acquisition financing activity following an extended slowdown in M&A dealmaking. Improving market conditions, elevated levels of deployable capital among sponsors, and robust institutional demand for credit instruments have collectively encouraged private equity firms to pursue larger, more complex transactions. Investment banks are increasingly competing for mandates on high-profile buyouts, which generate substantial fee income and position arrangers within the growing pipeline of large-cap transactions requiring sophisticated multi-tranche financing structures across leveraged finance and acquisition markets.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.