Hillhouse Investment is close to securing a sizeable minority stake in LRQA, the UK certifications and inspections firm, purchasing the holding from the alternatives unit of Goldman Sachs Asset Management, according to people familiar with the matter. Those people said the parties are finalizing transaction details and that an announcement could come as soon as today.
Under the terms described by the sources, Goldman Sachs Asset Management's alternatives arm would remain the majority owner of LRQA after the transaction. The arrangement would therefore entail Hillhouse becoming a significant minority investor while Goldman retains control through its majority position.
Goldman Sachs acquired LRQA from Lloyd's Register in 2021. LRQA provides a range of assurance and compliance services, including quality assurance, inspection, safety and cybersecurity offerings. Its client base spans sectors such as food and beverage, healthcare and renewable energy, reflecting a diversified mix of end markets for its services.
LRQA operates in more than 150 countries and has grown both organically and through acquisitions, the people said. The company's global footprint and multi-sector service set were cited as background to the transaction discussions, though the sources did not disclose financial terms or specific changes to management or operations arising from the sale of the minority stake.
The discussions, as described by the sources, focus on structuring the minority stake purchase so that Goldman Sachs' alternatives unit remains the majority holder while bringing Hillhouse on as a long-term investor. Beyond those points, the parties have not publicly confirmed details, and the timing of any formal announcement depends on the completion of remaining terms.
Deal details
- Buyer: Hillhouse Investment is finalizing a purchase of a significant minority stake in LRQA.
- Seller: Goldman Sachs Asset Management's alternatives unit will continue to hold a majority stake after the transaction.
- Timing: Sources say the deal could be announced as soon as today, subject to finalization of terms.
About LRQA
- Services: Quality assurance, inspection, safety and cybersecurity.
- Sectors served: Food and beverage, healthcare, renewable energy, among others.
- Reach: Present in more than 150 countries and expanded via organic growth and acquisitions.