UL (Underwriters Laboratories) signed a definitive agreement to acquire the Quality Assurance business of Enfield, Conn.-based STR Holdings Inc. for about $275 million in cash.
The acquisition, the largest for UL, is part of Northbrook-based lab’s strategy to expand its offerings to global retailing and manufacturing customers.
STR’s Quality Assurance business is a global provider of testing, inspection, auditing and responsible sourcing capabilities focused on consumer products.
“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,” Keith Williams, president and CEO of UL, said in a statement.
Under the agreement, UL expects to make an election under IRS rules to treat the transaction as a sale of the assets.
The boards of both companies unanimously approved the deal, expected to close in the third quarter, and it is subject to customary closing conditions, including regulatory approvals. When the deal is complete, STR’s Quality Assurance business will become part of UL’s Verification Services business.
