TÜV SÜD Re-Focuses in Asia Pacific with aim to Double Revenue by 2014

TÜV SÜD Re-Focuses in Asia Pacific with aim to Double Revenue by 2014

TÜV SÜD, one of the world’s leading providers of testing, auditing, inspection and certification, corporate training and technical consultancy services, today announced it has divested its 100 percent stake in the Tertiary Education business of PSB Academy in Singapore to an affiliate of Baring Private Equity Asia, one of the largest private equity firms in Asia, to focus on further growth and investment in its core business. This will include reinvesting funds into its Asia Pacific operations to further enhance its ability to achieve organic and inorganic expansion in synergistic growth sectors such as renewable energy, e-mobility and energy management. Last week, the firm divested its 49 percent stake in James Cook Australia Institute of Higher Learning Pte Ltd to JCU Enterprises Pty Ltd for the same reason. The announcements come off the back of strong FY2010 financial results that saw revenue increase by 10.1 percent to over EUR 1.55 billion.

Both of TÜV SÜD’s recent divestments are in line with the company’s global growth strategy of expansion in core areas, primarily in Asia Pacific. The company already has an extensive office and laboratory network in the region spanning 14 countries including Singapore, China, India, Japan and Korea. By 2014, it wants to more than double its revenue in the region EUR 500 million and increase its headcount to 7,000.

“The past couple of weeks have seen us re-focus our operations on what we do best – testing, inspection, auditing, certification, corporate training and technical consulting”, said Ishan Palit, President and CEO of TÜV SÜD Asia Pacific. “We will now evaluate a series of opportunities to achieve organic and inorganic expansion in synergistic growth sectors to grow our business inAsia, a region with a rapidly increasing appetite for high-quality independent third party testing and certifications services. In doing so, we will further enhance our ability to add value to our clients’ products and services by ensuring their safety, and sustainability.”

In the short-term, the firm has targeted becoming the market leader in electromobility – specifically in battery testing and certification services for electric vehicles – energy management consultancy and green buildings certification.

While TÜV SÜD’s divestments signal the end of the firm’s Tertiary education stakeholdings in Asia, the firm remains committed to developing its business in Singapore and investing in its corporate training operations. TÜV SÜD continues to employ more than 500 staff in Singapore. This includes the former Corporate Training business of PSB Academy and SQ Centre Pte Ltd which formed TÜV SÜD PSB Learning Pte. Ltd. With a team of 300 in-house consultants, associates and curriculum developers, TÜV SÜD PSB Learning currently offers approximately 200 management and technical skills training programs to over 25,000 clients inSingaporeand Asia Pacific. 

Baring Private Equity Asia plans to build PSB Academy into the leading private education institution in Asia. The firm, which has a proven track record in the management of such institutions, has mapped out a three-pronged strategy to achieve this objective:

  • Grow student enrolment through wider breadth of program offerings and increased marketing and student recruitment efforts,
  • continue to nurture relationship with university partner and introduce new programs, and
  • expand into regional markets such as China, India, Vietnam and Indonesia through local partnerships or acquisitions.

Baring Private Equity Asia’s current portfolio in the education sector includes Nord Anglia Education, a leading global premium K-12 school platform with a focus on Asia; Minsheng: a leading operator of private colleges inChinawith the largest independent college group in South-WestChinawith over 27,000 students; andCambridgeInternationalCollege: a provider of vocational education and English tutoring services to predominantly Asian students inAustralia, theUKandCanada.

Palit added: “It was important for us that the new owner ofPSBAcademyhad a strong vision and financial commitment for the further development of the Academy, as well as a strategic interest in promoting and enhancing education inSingaporeandAsia. We are delighted to have found this in Baring Private Equity Asia and wish them and everyone at the Academy all the very best for the future.”

PricewaterhouseCoopers Corporate Finance Singapore was the exclusive lead financial adviser to TÜV SÜD for the sale of PSB Academy and the 49% stake in James Cook Australia Institute of Higher Learning.

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