NORTHBROOK, Ill. and ENFIELD, Conn., Aug. 16, 2011 /PRNewswire/ -- UL, a world leader in advancing safety, announced today 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 US$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."
"STR's Quality Assurance business is a market leader in its space and has been a very successful business as part of STR," said Dennis L. Jilot, Chairman President and Chief Executive Officer 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," said Sajeev Jesudas, President, 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 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.
About STR Holdings, Inc.
STR Holdings, Inc. is a leading global provider of high quality, superior performance solar encapsulants to the photovoltaic module industry. It is also one of the world's leading providers of consumer product quality assurance testing, audit, inspection and responsible sourcing services, which help ensure that suppliers and retailers have the highest level of confidence in the quality and safety of their products and in the social standards of the supply chain producing them. Further information about STR Holdings, Inc. can be obtained via the Company's Web site at www.strholdings.com.
About STR Quality Assurance
STR 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, CT, STR's Quality Assurance business has sophisticated laboratories and offices in over 42 countries across five continents, and the reach to provide audit services in over 140 countries around the world. Visit STR Quality Assurance at www.strquality.com.
UL is a premier global independent safety science company with more than 117 years of history. Employing more than 6,800 professionals in over 96 countries, UL has five distinct business units -- Product Safety, Environment, Life & Health, University, and Verification Services – to meet the expanding needs of our customers and to deliver on our public safety mission. Additional information about UL may be found at UL.com.