Odyssey agrees to transfer Applied Technical Services to SGS for a sum of $1.325 billion
Applied Technical Services (ATS), a leading provider of Testing, Inspection, Calibration, and Forensic Consulting solutions in North America, is set to undergo a significant change following the announcement of its sale to the global leader SGS. The transaction, valued at $1.325 billion, marks the culmination of a period of rapid growth and expansion under the ownership of Odyssey Investment Partners.
Since Odyssey's acquisition of ATS in 2020, the company has undergone a transformative journey. Under the strategic guidance and financial support provided by Odyssey, ATS has completed nearly 40 acquisitions, significantly scaling its operations, diversifying its service offerings, and broadening its end markets. This has resulted in ATS becoming a North American business recognised for its scale, diversity, and high-quality services, serving various stable markets including manufacturing, power generation, food and beverage, aerospace, and defense.
The collaboration between ATS and Odyssey has been instrumental in the company's growth. ATS's CEO, Mike McIlwain, has publicly credited Odyssey for the "unprecedented growth" achieved by the business, attributing it to Odyssey's vision, industry experience, and strategic resources.
The sale to SGS is a strategic move that further enhances ATS’s growth trajectory. SGS expects to leverage ATS's strong presence in specialized testing, inspection, calibration, and forensic solutions, particularly in high-growth, regulated sectors like aerospace, defense, energy, and manufacturing, to drive sustainable growth and margin expansion in North America. This acquisition aligns with SGS’s "Strategy 27" goal to more than double its North American revenue by 2027, boosting regional sales above $1.5 billion and realizing at least $30 million in annual EBITDA synergies within three years.
The SGS network will provide ATS with opportunities to expand its services to new geographies, further bolstering its growth and performance. The deal, which is expected to complete by the end of 2025, pending customary closing conditions, positions ATS for continued accelerated growth, geographic expansion, and enhanced operational efficiency as part of SGS’s broader global network.
Houlihan Lokey serves as the lead financial advisor for the transaction, with Rothschild as the co-financial advisor. Latham & Watkins serves as the legal counsel to Odyssey for the transaction.
ATS, based in Marietta, Georgia, and employing around 2,100 people across over 85 locations in the US, has been considered a best-in-class service provider by its customers. The company's service offerings include materials testing, environmental simulation, chemical analysis, calibration, and forensic consulting.
As ATS embarks on this new chapter under SGS, its CEO, Mike McIlwain, expressed his gratitude to Odyssey for their partnership and the benefits it has brought to ATS. He looks forward to the continued collaboration between ATS and Odyssey, which he believes will benefit ATS for years to come.
In the course of its growth trajectory, ATS has utilized the financial support provided by Odyssey, a private equity firm, to expand its business across various industries such as manufacturing, power generation, food and beverage, aerospace, and defense.
The strategic acquisition by SGS, a global leader in inspection, verification, testing, and certification services, represents a significant opportunity for ATS to extend its finance-backed operations into new geographies and further diversify its service offerings within the broader industry of business.
