3i secures refinancing for Element Materials Technology

The new financing will support a buy-and-build strategy and has already funded the acquisition of Materials Engineering Research Laboratory Limited.

The company acquired Detroit Testing Laboratory in December 2011, a transaction funded from the company's existing balance sheet. In February 2012, the company bought Cincinnati-based MAR-TEST.

Debt
A banking syndicate comprising five existing backers was joined by a further two banks to provide the $93.25m package.

Previous funding
3i acquired Dutch company Element Materials Technology (then Stork Materials Technology) in 2010 in a deal that valued the firm at €150m. The buyout house had been considering the testing and inspection sector for the previous four years and had been in contact with the company's management prior to the auction process, run by KPMG. 3i was drawn to the deal as the company was a non-core asset of a larger conglomerate, Stork BV, and believed it had not yet been developed to its full potential.

Company
Element Materials Technology provides material testing and inspection, product qualification testing and failure analysis for the aerospace and defence, oil and gas, transportation and power generation industries. The company has a network of laboratories across North America, Europe and Asia and is headquartered in Amsterdam. Element Materials Technology employs 1,000 members of staff throughout the US and Europe.

People
George Archer is banking director at 3i.

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• Topics
• Benelux
• Industrials
• Restructuring
• Refinancing
• 3i
• Netherlands