Intertek inks deal to acquire Base Met Labs

(Sharecast News) - Intertek announced an agreement to acquire Base Metallurgical Laboratories and Base Met Labs US on Monday, which provide metallurgical testing services within the minerals sector in North America, for an undisclosed sum. The AIM-traded firm said the acquisition came ahead of expected heightened demand for diverse energy sources and minerals to sustain a growing global population.

It said it aimed to address that demand by offering comprehensive 'total quality assurance' solutions throughout the resource development chain.

Base Met Labs, established in 2014, operates from laboratories in Kamloops, British Columbia, and Tucson, Arizona.

Its specialised focus on metallurgy would complement Intertek's existing strengths in geochemistry, mine site laboratories, and trade inspection services, the board explained.

By acquiring Base Met Labs, Intertek said it was expanding its assurance, testing, inspection and certification (ATIC) offerings in the minerals industry.

That, it said, would broaden its presence in the Americas, tapping into the largest and fastest-growing market for mining activities spanning Canada, the United States, Central and South America.

Base Met Labs specialises in testing gold, copper, and other critical metals, aligning with the increasing demand for minerals testing, particularly in battery and energy metals.

The acquisition would leverage Intertek's recent success with its Minerals Global Centre of Excellence in Perth, Australia - one of the world's most advanced minerals laboratories.

Intertek's board said the consolidation would strengthen the company's position in the industry, enhancing its ability to deliver innovative and high-quality services.

Base Met Labs, with a workforce of over 40 individuals, reported revenues of £7.8 million 2023.

"There is no doubt that, with a growing population and the rise in demand for raw materials, the requirement for leading ATIC solutions at every stage of the minerals and mining supply chain globally is increasing rapidly," said chief executive officer André Lacroix.

"The acquisition of Base Met Labs is highly complementary to our ATIC service offering, establishes a minerals testing footprint for Intertek on the American continent and creates attractive growth opportunities with existing and new clients.

"We welcome the Base Met Labs team to Intertek and look forward to working together to help the world's leading mining companies accelerate into a sustainable future, enabling us to fulfil our mission of making the world a better, safer, more sustainable place for all."

At 0820 GMT, shares in Intertek were up 0.02% at 4,589p.

Reporting by Josh White for Sharecast.com.