(Bloomberg) — Singapore state-owned investor Temasek Holdings Pte is nearing a deal to buy testing company Element Materials Technology from buyout firm Bridgepoint Group Plc for almost $7 billion, people familiar with the matter said.
Temasek, which is already a minority owner in the business, could announce an agreement as early as Monday, said the people, who asked not to be identified because discussions are private.
U.K.-listed private equity firm Bridgepoint began exploring a sale late last year, Bloomberg News previously reported. Temasek preempted a bidding process that was expected to draw interest from other buyout firms as well as strategic investors. Cinven Ltd. and the Canada Pension Plan Investment Board were among parties reported to be interested.
Element Materials tests and certifies products and materials used in industries ranging from oil and gas to aerospace. The company, which can trace its history back almost two centuries, has more than 200 laboratories globally. Bridgepoint agreed to buy the business in 2015 from rival 3i Group Plc.
While talks are advanced, as with all deals, an agreement could still be delayed or fall apart. A representative for Bridgepoint couldn’t be immediately reached for comment outside regular business hours, while a spokesman for Temasek declined to comment.
It’s been a fast start to the year for dealmaking, with mergers and acquisitions volumes already up 28% to $252 billion, according to data compiled by Bloomberg. The transaction would rank as one of Temasek’s biggest investments in Europe in years, the data show.
A sale of Element would also be one of the largest by Bridgepoint since it went public in a July initial public offering. The buyout firm currently has a market capitalization of $4.3 billion.
(Updates with deal volumes in penultimate paragraph.)
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