Applus+ is selling its inspection business in the United States

Applus+, the Galician concessionaire of ITV, has signed an agreement to sell 100% of its non-destructive testing and inspection business in the United States, which mainly serves the oil and gas industry. The sale is to a financial investor and is subject to certain regulatory approvals, and is expected to be completed in the coming months. The company did not disclose the name of the buyer. It advanced that the business from which it has just been separated achieved a turnover of approximately 100 million euros in 2022, but with losses in business, “under challenging competitive conditions on the local market” in recent years.

Applus+ pointed out that the price of the transaction is not important; however, “closing the operation will improve the group’s profitability and return on invested capital.”

The rest of Applus+’s North American business, which now accounts for around 10% of group revenue, will continue its “potential for strong growth and margin improvement”.

In recent months, the group has announced three sales of “slower businesses”, with a turnover of approximately EUR 150 million in 2022. In addition, since the new strategic plan was published in November 2021, Applus+ has carried out seven acquisitions and the purchase of a 20% minority stake in the ITV business in Galicia which he did not yet own.

In total, the group invested approximately EUR 100 million in strategic portfolio areas that improve service offerings in more sustainable businesses, with higher growth and better margins.