Opus Inspection signs agreement to acquire Envirotest and become the vehicle inspection market leader in the United States
|Contact: Lothar GeilenPhone: (954) 667-7740
Fax: (860) 392-2105
Mark San Fratello
Phone: (860) 607-2116
|FOR IMMEDIATE RELEASE11:00 a.m. EST, November 5, 2013 [update]|
Opus Inspection, Inc. has signed a merger agreement to acquire Envirotest Systems Holdings Corp., a leading vehicle inspection services and technology company in North America. The purchase price is approximately USD 84 million and the transaction is expected to close in early 2014.
- Opus Inspection has signed an agreement to acquire Envirotest Systems Holdings Corp. (Envirotest) for a purchase price of USD 84 million on a debt free basis.
- After the Merger, Envirotest will become a subsidiary of Opus Inspection and will continue to operate as Envirotest with the current management team in place.
- Envirotest operates long-term vehicle inspection programs in the states of Colorado, Maryland, Indiana, Ohio, and Tennessee in the United States, and in British Columbia in Canada.
- As a result of the Merger, Opus Inspection will become the leader in the U.S. vehicle inspection market.
- In 2012, Envirotest had a turnover of approximately USD 86 million.
- The transaction is financed through existing and new equity and bank loans, and is expected to contribute to net profit per share beginning in early 2014.
Envirotest, headquartered in Windsor, Connecticut, USA, is a market leader in the centralized vehicle inspection business in the United States. Program management and operations are conducted in North America, and Remote Sensing Device (RSD) services are offered globally. Envirotest has exclusive rights to certain RSD patented technology and has developed its own proprietary vehicle inspection database systems (VIDs) and in-station vehicle inspection equipment. Envirotest has 1,060 employees. The acquisition includes approximately 60 real properties owned by Envirotest.
Opus Inspection, headquartered in East Granby, Connecticut, is a market leader in the United States in the decentralized vehicle inspection business. Program management, data management operations, and equipment sales are conducted in seventeen states, plus Mexico, Peru, and Sweden.
“Envirotest is a company with a great reputation, strong customer relationships, good profitability and long-term centralized vehicle inspection contracts” said Lothar Geilen, President and CEO of Opus Inspection. “Program operations are one of the company’s strengths. I especially want to express a warm welcome to all Envirotest employees, who have been instrumental in the company’s ongoing success.” Geilen continued.
“Envirotest assets and capabilities will be strong compliments to Opus Inspection and will strengthen their position as a leader in the vehicle inspection marketplace” added Mark San Fratello, President and CEO of Envirotest. “This merger will provide significant benefits to Envirotest customers and employees.” he added.
The merger will combine the strengths offered by both Opus Inspection and Envirotest, add valuable human resources and infrastructure, and provide a clear path for new business and future growth. For more information about Envirotest please visit www.etest.com; and for Opus Inspection, please visit www.opusinspection.com.
Opus Inspection is part of Opus Group and provides turnkey vehicle inspection program management contract services to various levels of government agencies (federal, state and regional) and world-class products to individual inspection stations. Opus Group’s share is listed on Nasdaq OMX Stockholm under the ticker OPUS.
Envirotest Systems Holdings Corp. – Established in 1974, Windsor, Connecticut based Envirotest Systems Corp. is the leader in centralized vehicle emissions testing equipment, services, and technology in North America. Envirotest provides Remote Sensing Device services throughout the world and operates six centralized and decentralized vehicle emissions testing programs in the U.S. and Canada under its Envirotest brand (www.etest.com).