Temasek buys Bridgepoint's Element Materials in $9.4b deal

LONDON - Singaporean state-owned investor Temasek has acquired Element Materials Technology Group from Bridgepoint, the London-listed private equity firm said on Tuesday (Jan 25).

The terms of the deal were not disclosed but sources had earlier told Reuters that it valued Element, which tests and certifies industrial products and materials, at about $7 billion (S$9.4 billion) 

The transaction marks Temasek’s single biggest investment since it acquired a near 25 per cent stake in health and beauty retailer AS Watson Holdings for $5.7 billion in early 2014, according to data from Refinitiv.

It also marks a rare controlling-stake transaction by Temasek, which had been a minority shareholder in Element since 2019. Element generates annual revenue of around 1 billion dollars and has grown at over 20 per cent per year over the last decade.

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Temasek reported a 25 per cent rise in its portfolio value to a record ($283 billion) S$381 billion in the year ended March 2021.

Bridgepoint, which listed in London in July 2021, acquired Element from British buyout group 3i for an undisclosed sum in December 2015.

Based in London, Element has clients in sectors including aerospace, industrial, energy, and technology. Its 7,000 scientists, engineers and technologists work across more than 200 laboratories.

Element was advised by Bank of America Securities, Goldman Sachs and Rothschild & Co. The transaction remains subject to customary regulatory approvals.