Classification society Lloyd’s Register (LR) is selling its Business Assurance & Inspection Services division to Goldman Sachs Asset Management. The transaction, which includes the cyber security subsidiary, Nettitude, is expected to close during the second half of this year, following anti-trust and regulatory approvals.
In a statement, the classification society explained that the disposal will enable it to provide better support for clients as they adjust to the regulatory, economic and societal pressures to digitalise and decarbonise within challenging timeframes. Proceeds from the disposal, meanwhile, will enable faster investment in its maritime service activities, both organically and through acquisitions.
Lloyd’s Register Group chief executive, Nick Brown, commented: “We believe this will unlock significant growth potential for both companies. For Lloyd’s Register, it comes at a time when there is a pressing need for specialist maritime advisers to guide clients through fundamental change and to help support their digitalisation and decarbonisation ambitions.”
He continued: “This transaction builds on our 260-year heritage in the maritime industry and will strengthen our ability to take our compliance offering to the next level, expand our risk and advisory services, and develop industry-leading digital solutions. It will also provide greater focus to build LR’s role as a leading industry advisor for maritime supply chain safety, resilience, efficiency and performance.”
Michael Bruun, EMEA head of Private Equity business at Goldman Sachs Asset Management, said: “We are delighted to invest in LRQA and look forward to accelerating the company’s growth trajectory both organically and through acquisitions. We are excited by LRQA’s strong ESG capabilities and the important role the company plays supporting clients managing their sustainable growth path.”
LR refocuses business in deal with Goldman Sachs