April 12, 2017
Volume 17 Issue 52
Intertek Acquires German Testing Service
Testing company Intertek Group plc announced yesterday that it has completed the acquisition of KJ Tech Services, a Germany-based company specializing in on-road testing.
The terms of the acquisition have not been disclosed.
KJ Tech was formed in 1989 to provide testing services for vehicles, lubricants, fuels and automotive components, according to its website. The company began conducting road tests in Kuwait, Bahrain and Oman in 2004, and announced a worldwide expansion in 2014, moving into the Canadian and Chinese markets. For 2016 KJ Tech reported revenues of approximately €9.7 million (U.S. $10.3 million).
Josh Egan, Intertek’s investor relations director, told a reporter that KJ Tech was looking to be acquired to gain support in expanding its business outside Germany.
As consumer demand climbs for high performing vehicles and lower fuel consumption, automotive technologies intensify and environmental regulations become more stringent, Intertek expects demand for on-road testing and laboratory testing to increase.
The London-based company believes it will be able to keep up with the increased on-road testing demand through KJ Tech’s existing services. “KJ Tech’s services are highly complementary to Intertek’s existing in-lab validation service offerings in its Transportation Technologies business,” said Egan. “Acquiring KJ Tech will also allow Intertek to increase the level of [Assurance, Testing, Inspection and Certification] service offering to its existing and new Transportation Technology clients.”
KJ Tech typically performs its services locally in Germany, but the tests can be conducted worldwide to fit the needs of the customer. Because Intertek’s laboratories and offices span over 100 different companies, KJ Tech’s services are expected to become more accessible on a global scale.