UL Solutions to Acquire Eurofins' Electrical & Electronics Business for $670M
Event summary
- UL Solutions Inc. (NYSE: ULS) agrees to acquire Eurofins Scientific's electrical and electronics (E&E) business for approximately $670M (€575M).
- The deal includes the MET Labs certification mark and is expected to close in Q4 2026, subject to regulatory approvals.
- Eurofins' E&E business generates approximately $200M in revenue in 2026 and represents an enterprise value multiple of 14.5x estimated 2026 EBITDA.
- UL Solutions plans to fund the acquisition with cash on hand, including proceeds from the sale of its Employee Health and Safety software business.
The big picture
UL Solutions' acquisition of Eurofins' E&E business underscores the ongoing consolidation in the testing, inspection, and certification (TIC) sector. The deal strengthens UL Solutions' position in electrical safety and connected products, aligning with the growing demand for global product compliance amid increasing digitization. The strategic move also reflects UL Solutions' focus on enhancing its TIC and Risk & Compliance software capabilities, as it divests non-core assets to fund growth initiatives.
What we're watching
- Integration Challenges
- How UL Solutions will integrate Eurofins' E&E business into its existing operations and realize expected cost synergies.
- Regulatory Approvals
- Whether the transaction will receive timely regulatory approvals, given the global nature of the businesses involved.
- Market Expansion
- The pace at which UL Solutions can leverage Eurofins' capabilities to enhance its presence in EMEA and Asia-Pacific regions.
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