Banks are preparing debt packages totalling around £5bn to support a potential leveraged buyout of UK testing and inspection group Intertek Group Plc by private equity firm EQT, underscoring renewed momentum in large-cap acquisition financing, according to a report by Bloomberg.
The proposed funding is expected to be structured through a combination of leveraged loans and high-yield bonds, potentially issued in both euros and US dollars to broaden the investor base and optimise pricing. The dual-currency approach would allow arrangers to access deeper liquidity pools as institutional demand for higher-yielding credit remains strong.
The financing race comes amid a broader revival in M&A-related lending activity, as improving market conditions and significant levels of deployable capital encourage sponsors to pursue larger transactions. Investment banks are increasingly competing to underwrite high-profile buyouts, which typically generate substantial fee income.
Morgan Stanley, which is advising EQT on the potential transaction, is expected to play a key role in the financing package alongside other lenders, according to people familiar with the process.
EQT has made an indicative cash offer of £60 per share for Intertek, valuing the company at approximately £9.2 billion. The private equity firm has been granted an extension to June 18 to determine whether it will proceed with a firm offer, as it continues due diligence and governance assessments.
If completed, the deal would add to a growing pipeline of large-cap private equity transactions requiring complex, multi-tranche financing structures, highlighting renewed activity across leveraged finance and acquisition markets after a prolonged slowdown in dealmaking.
