Applus+ advances in its growth strategy with new acquisitions in the Americas, one of its key markets

03/11/2014

    The company enters the North American aerospace testing market, a strategic and high growth market in the region. Through its acquisition of Ingelog, Applus+ positions itself in the infrastructure sector in Chilean infraestructure sector and drives its expansion strategy to other LATAM markets.

    Barcelona, 3rd November 2014.- Applus+, the global Testing, Inspection and Certification Company, has signed sale and purchase agreements with Integrity Aerospace Group (IAG) and minority shareholders in North America and has closed an acquisition in South America of Ingelog. These reinforce the company’s presence in strategic and high growth markets in the region.
     
    Entering into the North American aerospace testing market
    In North America, Applus+ has agreed to purchase three companies from IAG and other third party shareholders -X-Ray Industries, N-Ray Services and Arcadia Aerospace- which are the premier suppliers of Non Destructive Testing to the aerospace market and gas turbine industry. The companies with 74 years of history have over 200 employees and operate primarily from 7 locations across the USA and Canada and a further 10 co-locations embedded within customer facilities.
     
    X-Ray Industries and N-Ray Services will form part of the Applus+ RTD division and will reinforce the division´s strong presence in the North American market. Arcadia Aerospace will be part of Applus+ Laboratories and will be this division´s first entry into the US market.
    The purchase agreement with Integrity Aerospace Group is subject to approval by the US authorities, in particular the Committee on Foreign Investments (CFIUS).
     
    Strengthening presence in the infrastructure sector in Latin America
    Ingelog is among the leading providers of inspection and control in the transport and infrastructure industries in Chile and is one of the country’s leading engineering firms.
    With this acquisition, the Company strengthens its strategic market position in an industry which is forecast to grow rapidly during the next few years following expected major public and private investments.
     
    Ingelog’s activity and positioning in the Chilean project management and planning market are complementary to Applus+’s current activity in the country, which is developed through its subsidiary Applus+ Norcontrol, as it is dedicated to the inspection and construction supervision and quality control in energy and mining. Ingelog will support Applus+ in its expansion to other Latin American countries, where investment in infrastructure is core to their development.
    With 22 years of industry experience and 430 employees, Ingelog has one of the highest levels of accreditations for public, private and major infrastructure and mining project procurement.
    "We continue to make progress in the consolidation of our position in strategic markets. These acquisitions strengthen our business and are a further step in developing our presence in key sectors with high growth potential and margins. Their experience and credentials, together with our own, will open up new possibilities for expansion into surrounding countries and will attract new customers,” explained Fernando Basabe, CEO of Applus+.
    The combined annual revenue of these two acquisitions is over €40 million.
     
    Applus+, a global Testing, Inspection and Certification company
    Applus+ is one of the world’s leading companies in Testing, Inspection and Certification. It provides solutions for customers in all types of industries to ensure that their assets and products meet quality, health & safety, and environmental standards and regulations.
    In 2013, Applus+ recorded revenue of € 1,581 million, employs more than 19,000 people and operates in more than 60 countries in five continents. 
     
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