UL to acquire quality assurance business of STR Holdings

NORTHBROOK — UL announced Tuesday it 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 global provider of testing, inspection, auditing and responsible sourcing services 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,” said 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.”

The acquisition will strengthen ULs ability by expanding its offerings for apparel, toys, food, private label brands and other general consumer merchandise, according to Sajeev Jesudas, president of UL Verification Services.

Under the terms of 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 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.