Element Completes Acquisition of European Aerospace Testing Company TRaC Global
Element Materials Technology has today completed the landmark purchase of TRaC Global Ltd (TRaC) in a deal that represents Element’s largest single acquisition to date. In March 2015, Element announced that it had entered into a binding share purchase agreement with Bioquell PLC to purchase TRaC.
This purchase dramatically expands Element’s Aerospace footprint in Europe with the addition of six UK laboratories and capabilities in EMC (Electromagnetic Compatibility), Vibration and Environmental Simulation, Safety, Radio, Telecoms, Explosive Atmosphere Testing (ATEX), Finite Element Analysis (FEA) and Early Stage Qualification (ESQ). The deal adds 30 EMC testing chambers to the Element Group, including a Heavy Vehicle Semi-Anechoic Chamber (HVSAC) with an 18m x 14m working volume and capacity for 70 ton floor loading, which is one of only three in the UK.
Element’s continued investment in its Aerospace Product Qualification Testing (PQT) offering ensures that it remains uniquely positioned to deliver on both the PQT and Materials Testing (MT) requirements of Aerospace Primes and their supply chain partners.
TRaC is the second major addition to the Element platform in Aerospace product qualification testing in the first quarter of 2015, having acquired Minneapolis-based Environ Laboratories in January.
Charles Noall, President and CEO of Element, says: “The acquisition of TRaC is a hugely important step towards our goal to become the recognized market leader for materials testing and product qualification testing services. By significantly expanding Element’s Aerospace capacity in Europe, adding exciting talent and laboratories including a presence in China, we are satisfied that the deal tangibly strengthens the Element platform and further demonstrates our ambitious, strategic growth plans.
“TRaC’s impressive list of client approvals; together with their exceptional team of Engaged Experts; great delivery capabilities and their strong relationships with existing Element clients; means that we are better-placed than ever to become the most trusted testing partner for our clients, enabling competitive time-to-market advantages through shorter testing turnaround times.”
Jo Wetz, Chief Financial Officer of Element, says: “We are exceptionally pleased to confirm the completion of this deal. Element’s strong track record and flexible financing structure has meant that we were able to complete the acquisition of TRaC quickly. Having significant lender commitments of over $300m in place, which is over four times the amount required, once again demonstrates the flexibility of our capital structure and also the confidence our investors have in Element’s ability to grow rapidly – both organically and through acquisition.”
The deal takes Element’s headcount to 1,800 and the number of Element facilities to a total of 51.
About Element: Element is a company with a global presence; its laboratories are staffed by experts specializing in materials testing, product qualification testing and failure analysis for the Aerospace, Oil & Gas and Transportation and Industrials sectors. Element’s team of 1,800 scientists, engineers and technicians work in 51 facilities located throughout the U.S. and Europe. For a complete list of Accreditations & Approvals and more information, please visit www.element.com.
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This transaction involved a recommendation of 3i Corporation, a US wholly owned subsidiary of 3i Group.