Applus+’s €67 Million Acquisition of Reliable Analysis


Dentons has advised Applus+ on the deal.

Applus+, a world-leading company in testing, inspection and certification, executed the acquisition of Reliable Analysis, a laboratory focused on materials, component, electrical and electromagnetic compatibility testing.

Applus+ has purchased the entire share capital of Reliable Analysis from the company’s founders for an initial consideration of €67 million (plus an undisclosed deferred consideration). Further deferred consideration is payable in 2024 subject to the achievement of certain financial targets. The proforma leverage of the Group, as per the covenant definition, after funding this acquisition is expected to be around 2.7 times at the end of September 2020.

The transaction represents a significant increase of Applus+ Laboratories division’s presence in the Chinese market and strengthens its leading position in the field of electric vehicle testing. Based in Spain, Applus+ Laboratories is present in 11 countries across Europe, Asia and North America. Reliable Analysis is a US-based company with. facilities in Michigan as well as in Shanghai and Liuzhou, China.

Reliable Analysis is a laboratory-based materials, component, electrical and electromagnetic compatibility (EMC) testing company with over 300 employees primarily serving the automotive industry. It operates from two locations in China and two in the USA and enjoys high EMC testing recognition for electric vehicle powertrains and other components from the global automotive manufacturers

Dentons team advised Applus+ on the cross-border transaction with Partner Diego Pol (Barcelona) acting as relationship partner, Partner Ilan Katz (New York; Picture), who led the deal in the US, with support from managing associate Gregory A. DiBella (Short Hiills) and partner Stephen D. Libowsky (Chicago), among others, and Partner Glen Wei (Shenzhen) and counsel Frank Niu (Beijing), who led the work in China.

Involved fees earner: Gregory DiBella – Dentons; Ilan Katz – Dentons; Stephen Libowsky – Dentons; Frank Niu – Dentons; Diego Pol – Dentons; Glen Wei – Dentons;

Law Firms: Dentons;

Clients: Applus+;

Author: Ambrogio Visconti