UL To Acquire Quality Assurance Business of STR Holdings Inc.

Adds full range of quality assurance services

Published: Wednesday, August 17, 2011 - 11:53

(UL: Camas, WA) -- Underwriters Laboratories Inc. (UL), a world leader in advancing safety, has announced the execution of a definitive agreement whereby UL will acquire the quality assurance business of STR Holdings Inc., an Enfield, Connecticut-based company. The acquisition is part of UL’s strategy to expand its offerings to global retailing and manufacturing customers. STR’s quality assurance business is a leading global provider of testing, inspection, auditing, and responsible sourcing capabilities exclusively focused on consumer products. UL will pay an estimated $275 million in cash for STR’s quality assurance business.

“The acquisition of STR’s quality assurance business will be a major milestone for UL as we continue to significantly expand our business and the services we can offer our customers,” says Keith Williams, president and CEO of UL. “STR’s quality assurance business has unparalleled global depth and breadth in the consumer products sector. Through this acquisition and other strategic actions, we strive to become the company that manufacturers and retailers turn to for their consumer product quality assurance and responsible sourcing needs around the globe.”

“STR’s quality assurance business is a market leader in its space and has been a very successful business as part of STR,” says Dennis L. Jilot, chairman, president, and CEO of STR Holdings Inc. “I am delighted to have found such a perfect partner for our quality assurance business in UL. The UL brand is known, trusted, and respected around the world and our team will continue its global leadership as part of UL.”

“STR’s quality assurance business complements our electronics and electrical expertise by enabling us to offer retail customers a complete suite of services for apparel, toys, food, private label brands, and other general consumer merchandise,” says Sajeev Jesudas, president of UL verification services. “We are pleased that STR’s quality assurance business will allow us to significantly increase our testing capabilities in the fast growing consumer products market and enables us to deepen our relationships with global manufacturers and retailers.”

Under the terms of the agreement, UL expects to make an election under Internal Revenue Service rules to treat the transaction as a sale of the assets.

The boards of both companies unanimously approved the purchase agreement, and it is subject to customary closing conditions, including any regulatory approvals. Upon completion of the transaction, which is expected to close in the third quarter, STR’s quality assurance business will become part of UL’s verification services business.

STR's quality assurance business was founded in 1944 and provides testing, audit, certification, and responsible sourcing services to help ensure that clients have the highest level of confidence in the quality, safety, and social standards of their products and systems. Based in Enfield, Connecticut, STR’s quality assurance business has sophisticated laboratories and offices in more than 42 countries across five continents, and the reach to provide audit services in more than 140 countries around the world. Visit STR Quality Assurance at www.strquality.com.

About The Author

Underwriters Laboratories UL

Underwriters Laboratories Inc. (UL) is a global independent safety science company offering expertise across five key strategic businesses: Product Safety, Environment, Life & Health, Knowledge Services, and Verification Services. UL’s worldwide family of companies and network of service providers includes 64 laboratory, testing and certification facilities serving customers in 96 countries.