A flight to quality among consumer goods manufacturers is driving growth in the UK Testing, Inspection and Certification sector (TIC), which is expected to become a €2bn industry by 2015, according to dealmakers at Clearwater Corporate Finance.The Testing, Inspection and Certification Report 2012, compiled by Clearwater, has identified the increasing demand of TIC services from consumer goods manufacturers as the leading driver for growth in the sector.
Consumer goods is now the most active market for TIC services with a 21 per cent share, followed by healthcare and life sciences (18 per cent) and industrials sector (17 per cent), and is expected to account for nearly a quarter (24 per cent) of all TIC services by 2015. The consumer goods industry will buy annually over €460m of TIC services in three years' time, representing a CAGR of 3.4 per cent.Market growth is encouraging interest from private equity to invest in the TIC services, as well as fuelling M&A activity within the industry as large players look to consolidate the sector. Recent transactions this year include the acquisition of NDT Services by global TICprovider Intertek in September, as well as NVM Private Equity's backing of the non-destructive testing firm Silverwing Group MBO, also in September.
The TIC sector covers a broad range of activities, including testing products to meet specific quality, technical, safety and performance regulatory standards; inspection services to ensure that goods comply with buyer's specifications; as well as certifications services that confirm the result of a test or inspection against a range of pre-specified standards set by governments, international standardisation institutions and clients.www.clearwatercf.com
QMT News: February 2013
Consumer goods manufacturers drive growth in testing and inspection services
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