Kiwa Group has signed an agreement to acquire CSA Group’s testing, inspection and certification (TIC) business, led by CSA Group Testing & Certification Inc., in a transaction valued at an enterprise value of €1.3 billion.
The proposed transaction will bring one of North America’s established TIC businesses into the Kiwa Group, expanding the combined company’s testing, inspection and certification footprint across key international markets.
The deal remains subject to approval by the members of the Canadian Standards Association, along with other customary closing conditions and regulatory approvals. Completion is expected in the coming months.
CSA Group TIC business serves 11,000 customers
Headquartered in Toronto, Canada, CSA Group’s TIC business operates 20 specialized laboratories across 12 countries and employs around 2,100 people.
The business serves approximately 11,000 customers and holds OSHA-recognized Nationally Recognized Testing Laboratory (NRTL) status in the United States and accreditation from the Standards Council of Canada (SCC).
Its operations support customers across North America, Europe and Asia, providing testing, inspection and certification services across these markets.
"I am extremely pleased with the conclusion reached by the Board of Directors in their selection of Kiwa," said David Weinstein, President and CEO, CSA Group. "We are proud of what we have accomplished to-date with our TIC business and, under Kiwa’s stewardship, we will be able to continue on this successful trajectory into the future – making the combined company a formidable force in the marketplace.”
Complementary TIC capabilities across global markets
Kiwa Group has a strong presence in Europe, alongside a growing footprint in North America, Asia and Australia. CSA Group’s TIC business has an established position in North America, with strong positions in Asia and Europe.
The companies said their complementary geographic strengths could provide customers with access to all three regions through a single partner. The development comes as supply chains are being reconfigured and products increasingly require separate certification for individual markets.
For the NDT and inspection sector, the transaction brings together two businesses with established testing and certification capabilities, potentially broadening the geographic reach available to customers requiring TIC services.
Kiwa highlights technical expertise and customer relationships
Kiwa Group CEO Luc Leroy highlighted the similarities between the two organizations, including their technical expertise, customer relationships and history of serving the public interest.
"What convinced us was the strong fit between CSA TIC and Kiwa Group. This is the kind of organization we know well, with deep technical expertise, long-standing customer relationships and a trusted mark. Kiwa began in 1948 as a public-interest institute in the Netherlands, so CSA's heritage is familiar to us. Both organizations were founded to serve the public interest and have developed cultures rooted in shared values. That is what our colleagues and customers will recognize in one another. We intend to build on the foundation CSA has created," said Luc Leroy, CEO of Kiwa Group.
Following completion, the Canadian Standards Association itself will remain outside the transaction and continue operating as a member-based, not-for-profit organization focused on its standards mandate.
Services to continue unchanged until completion
Until the transaction is completed, Kiwa and CSA TIC will continue operating as separate companies. Both businesses will continue serving customers under their existing arrangements, with no changes to services, contracts, certificates or points of contact.
The transaction is expected to close in the coming months, subject to the required approvals, closing conditions and regulatory clearances.
Reference: https://www.kiwa.com/en/news/csa-group-testing--certification-to-become-part-of-kiwa-group/
