April 14 (Reuters) - British product testing and certifications group Intertek is considering splitting into separate energy/infrastructure and testing/assurance businesses, it said on Tuesday,
Intertek Mulls Splitting Business Units, Shares Rise on Growth Prospects
Intertek's Strategic Review and Market Impact
April 14 (Reuters) - British product testing and certifications group Intertek is considering splitting into separate energy/infrastructure and testing/assurance businesses, it said on Tuesday, sending its shares as much as 14% higher.
The company said the move could help boost growth and returns for shareholders and that, if it decided to proceed, the plan could be implemented by mid-2027.
Analyst Perspectives on the Potential Split
RBC analysts said any demerger could lead to higher costs and reduced investments, but added that consolidation in the sector suggested neither of the two businesses would remain independent for long.
Market Reaction to Intertek's Announcement
Shares in London-listed Intertek were up 11% at 0755 GMT, compared with a 0.3% rise in the FTSE 100 index.
Industry Context: Reshaping Business Strategies
Several British firms have looked to reshape their businesses as tougher market conditions push them to rethink the path to maximum returns.
Recent Examples of Business Restructuring
Outsourcing firm Capita sold its private sector contact centre business in March, while engineer Smiths Group last year sold its baggage-screening unit. Chemicals company Johnson Matthey is in the process of selling its catalyst technologies business.
Scale and Growth Prospects for Intertek
Potential Separation Methods
The potential separation of Intertek Energy & Infrastructure and Intertek Testing & Assurance could be via either a sale or a spin-off, the company said.
CEO's Vision for the Split
"We believe that two specialist scale global ATIC (assurance, testing, inspection, and certification) businesses could be best positioned to accelerate growth and deliver greater value for shareholders," CEO André Lacroix said.
Financial Performance of Business Units
Testing & Assurance Growth
Intertek Testing & Assurance reported 5.6% like-for-like revenue growth in 2025 and contributed just over half of the group's revenue, according to the company's website. Intertek Energy & Infrastructure's revenue rose 2% on the same basis.
Company Outlook and Analyst Commentary
The company reaffirmed its guidance for mid-single-digit like-for-like revenue growth this year after a 5.4% increase in the first quarter, which JP Morgan analysts described as "reassuring".
($1 = 0.7400 pounds)
(Reporting by Prerna Bedi in Bengaluru. Editing by Sonia Cheema and Mark Potter)
