International linkups prompted two big acquisition deals, announced on Oct. 14. U.K. testing and inspection firm Intertek Group said it would purchase its smaller, Illinois-based peer Professional Services Industries for $330 million to gain a foothold in U.S. construction, while California water giant Tetra Tech is taking advantage of the favorable currency exchange in agreeing to buy Australian engineer Coffey International Ltd. for $79 million.
Intertek said the purchase of the 2,400-employee PSI “builds scale in the U.S. construction market, which has significant growth potential.” New CEO André Lacroix noted PSI’s strong positions in building and transportation inspection and non-destructive pipeline testing. PSI reported $254 million in 2014 revenue; Intertek in August said its half-year revenue of $1.6 billion was up 1.4%, despite oil-and-gas impacts. Noting that PSI was bought by a private- equity firm for $50 million in 2005, “this was a handsome return,” an analyst told ENR.