Temasek Aces a Mega Purchase, Seizing Control of Element Materials
Why This Deal is Anything But Ordinary
Temasek, the Singaporean state‑owned investor, has just snagged Element Materials Technology Group – a firm that rigorously tests and certifies industrial products and materials. The move, announced on January 25, comes from Bridgepoint, a London‑listed private equity house that had owned Element after taking it from 3i back in 2015.
The price tag was kept under wraps, but insiders say the company was valued at roughly $7 billion (S$9.4 billion). That makes it Temasek’s biggest investment since the 2014 purchase of a 25% stake in AS Watson Holdings, which cost about $5.7 billion.
For good measure, this deal is a first controlling stake for Temasek since 2019, when it was just a minority shareholder in Element. The company’s annual revenue hovers near $1 billion and has been growing faster than a rocket – over 20% year‑on‑year for the last decade.
What Makes Element Special?
- Clients span aerospace, industrial, energy, and tech sectors.
- 7,000 scientists, engineers, and technologists spread across more than 200 labs.
- Operating out of London, it has a global reach that suits Temasek’s ambition.
Temasek’s Portfolio is on a Rollercoaster
Earlier this year, Temasek announced a 25% jump in its portfolio value, hitting a record $283 billion (S$381 billion) as of March 2021. The Element acquisition will help keep that upward trajectory.
Glass‑Shattering Numbers and Quiet Negotiations
Bridgepoint listed its stake in Element in July 2021. In December 2015 it had taken over Element from British buyout group 3i for an undisclosed sum. Bank of America Securities, Goldman Sachs, and Rothschild & Co. advised Element throughout the deal, and legal hoops are still being cleared by regulators.
Temasek is Back on the Green Bandwagon
Following this move, the same fund that’s been working with its portfolio companies to accelerate the green transition is poised to push even more sustainable innovations in the industrial sector.
