SGS Expands Its Market Presence through Major Acquisition of ATS

SGS, the world’s leading testing, inspection, and certification company, has recently announced a significant acquisition that is set to reshape its presence in North America. The company has signed a definitive agreement to acquire Applied Technical Services (ATS), a well-established player in the testing and inspection sector with a strong foothold in the U.S. market. This strategic move aims to bolster SGS’s growth trajectory and enhance its service offerings across various high-growth sectors.

Overview of ATS

Founded nearly 60 years ago, ATS has built a robust reputation as a provider of specialized Testing, Inspection, Calibration, and Forensics solutions. With an expansive network comprising 85 advanced facilities across the United States, ATS employs a diverse team of around 2,100 skilled professionals. The company serves a wide range of industries, including Manufacturing, Aerospace, Defense, Power Generation and Distribution, and Insurance, which are all essential sectors requiring rigorous compliance and quality assurance services.

In the financial realm, ATS is expected to generate approximately USD 460 million in sales and USD 95 million in EBITDA in 2026, marking it as a significant asset to SGS. The execution of this deal is anticipated to enhance SGS’s annual sales in North America to over USD 1.5 billion, a monumental step towards achieving its goal of doubling sales in the region by 2027 compared to 2023 figures.

Benefits of the Acquisition

The acquisition is valued at USD 1,325 million, assessed on a debt-free, cash-free basis, and corresponds to a multiple of 11.2 times the projected 2026 EBITDA, including expected synergies. The deal structure includes a portion of the payment, less than USD 100 million, being offered as SGS shares to certain shareholders and key employees, subject to a three-year lock-up period. The majority of the purchase will be funded through cash and debt, while maintaining a leverage ratio near 2 times.

In the long term, the acquisition is expected to generate annual synergies of at least USD 30 million, realized within three years after closure, particularly through cost rationalization and cross-selling opportunities. Furthermore, the integration of ATS’s strong brand culture with SGS's well-established reputation is likely to create a unique advantage in the marketplace.

Strategic Insights

Géraldine Picaud, CEO of SGS, expressed enthusiasm about this acquisition, highlighting that it significantly accelerates the company's strategic ambitions in North America. She acknowledged ATS's exceptional teams, renowned for their integrity and customer-oriented service culture. By merging their strengths in the U.S., SGS and ATS are positioned to deliver sustainable growth and foster valuable synergies for enhanced shareholder value.

The transaction is subject to customary closing conditions and is slated for completion by late 2025 or early 2026. This acquisition not only reinforces SGS’s market position but also sets the stage for expanded service capabilities in a competitive landscape.

About SGS

Established over 145 years ago, SGS has earned its status as the world’s premier Testing, Inspection, and Certification company. With a global footprint that includes more than 2,500 laboratories and business facilities across 115 countries, SGS employs a dedicated workforce of about 99,500 professionals. The organization's commitment to excellence is encapsulated in its brand promise – “when you need to be sure”, underscoring reliability, trust, and integrity as its core values.

In this rapidly evolving market, the acquisition of ATS marks a pivotal moment for SGS as it embarks on this exciting journey toward enhanced service delivery, innovative solutions, and remarkable growth in North America.