News releases
Inspecta and SFS-Sertifiointi join forces - MB Funds takes a majority holding (Press release 31 October 2002)
Inspecta, a technical testing and inspection organisation, and SFS-Sertifiointi, which offers certification services, are joining forces. The companies are the market leaders in their own fields. The purpose of the combination is to create a strong Finnish player in the fast-developing testing, inspection and certification sector. The Finnish private equity company MB Funds has co-ordinated the buy and build transaction and will take a majority holding in the new corporate entity.
The Finnish State will privatise Inspecta Oy in its entirety. The owners of SFS-Sertifiointi Oy - the Finnish Standards Association SFS reg. assoc. and the Finnish Association for Quality Assurance of Construction Products (RTL) reg. assoc. - will retain their shareholdings in the new business combination. In addition, the operational management of Inspecta and SFS-Sertifiointi will have equity participations. Operations will continue under the present business names.
The Council of State has today approved the sale of Inspecta Oy’s shares outstanding to the new corporate entity. The terms and conditions of the deal have been agreed and the parties will today sign the documents confirming the project. The total value of the transaction is more than 12 million euros, in addition to which provisions have also been made for financing future growth.
A fast-developing sector with good potential
MB Funds’ activities embrace management buy-outs, privatisations and outsourcing projects. All these functions are coming together in the present transaction. Inspecta and SFS-Sertifiointi are joining forces for the purpose of creating a strong Finnish player in the testing, inspection and certification sector, creating an organisation that serves its customers locally but is also competitive on an international scale.
The sector is going through a process of consolidation. The business and ownership structures of companies in the field are changing. Competition is getting keener and customers are seeking increasingly international service providers, thus leading to the emergence of larger and stronger corporate entities. Concurrently, the public sector is continually transferring functions to companies that operate on a commercial basis. This too is expanding the market. In an open marketplace the customer can freely choose the provider of services, thereby ensuring competitive pricing. Within this competitive framework, Inspecta and SFS-Sertifiointi will be best positioned for success by joining forces.
“The companies’ operations complement each other splendidly and there is hardly any overlapping. Our objective is to increase the volume of business significantly, both through acquisitions and organically. We’re seeking to create strong underpinnings for the new company so that it can operate in Finland and expand its service palette to companies in the international marketplace. One of the main focuses of interest is the potential that is opening up in Finland’s nearby areas, such as the Baltic countries and Russia,” comments Matti Mertsola, MB Funds partner and chairman of the new business combination’s Board of Directors.
Improved customer service and competitiveness
Both parties are the market leaders in Finland in their own fields. Inspecta’s services encompass inspection and testing services for industry and energy production, measuring and calibration for service stations, the retail trade and industry, inspections and hallmarking of precious metals as well as personnel certification. SFS-Sertifiointi’s services cover the certification of systems and products. The companies’ customer base spans all industrial fields and is fast expanding into the service and public sectors.
“This is a very positive arrangement for us. The participation of a private equity investor will enable the company to continue its strong growth. Good opportunities for expanding our activities will now be opened up to us, both in Finland and in our nearby areas,” says Simo Hassi, Inspecta’s managing director.
“In recent years we’ve been actively searching for a strategic partner. The present arrangement will bring us new resources for developing and growing our business,” observes in turn Harry Lindström, managing director of SFS-Sertifiointi Oy.
The new business combination will have net sales in 2002 of about EUR 24.5 million and a payroll of some 300 employees. Both companies are experienced, well-known professionals in their respective fields. Operations will be developed in the years ahead by pooling resources and creating new products and service concepts as well as by expanding into new product areas. Synergy benefits will also be derived from exploiting an extensive regional network as well as through enhanced IT management, marketing and international operations.
The managing director of the new business combination will be Simo Hassi, Inspecta Oy’s managing director. Harry Lindström will stay on as managing director of SFS-Sertifiointi Oy.
The investors in MB Funds include the largest Finnish pension insurance institutions and insurance companies.
For additional information, contact:
MB Funds, Partner Matti Mertsola, tel. +358
400 602 568
Inspecta Oy, Managing Director Simo Hassi, tel.
+358 50 2255
SFS-Sertifiointi Oy, Managing Director Harry
Lindström, tel. +358 400 214 537
Finnish Standards Association SFS, Managing
Director Pekka Järvinen, tel. +358 9 1499 3366
Finnish Association for Quality Assurance of
Construction Products (RTL),
Chairman of the Board Kari Laukkanen, tel. +358
204 55 5522
For further information on the companies,
visit the websites below:
www.inspecta.fi
www.sfs-sertifiointi.fi