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UL Solutions Acquires Germany-Based Hydrogen Testing Company TesTneT

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UL Solutions (NYSE: ULS) has announced the acquisition of TesTneT Engineering, a Germany-based leader in hydrogen component and system testing. This acquisition enhances UL Solutions’ capabilities in alternative fuels and global decarbonization efforts. TesTneT, founded in 2009, provides comprehensive testing services for hydrogen storage systems and refueling stations. With locations near Munich and Vancouver, TesTneT serves a global customer base, including the automotive sector and top-tier OEMs. This acquisition strengthens UL Solutions' position in the hydrogen industry by adding advanced testing capabilities and deep industry knowledge. The transaction concluded on July 8, 2024, but financial terms were not disclosed.

Positive
  • Enhanced expertise in hydrogen technology and alternative fuels.
  • Expansion of global market presence through TesTneT's locations in Germany and Canada.
  • Addition of advanced testing capabilities and capacity.
  • Strengthened position in the hydrogen industry.
  • Potential for increased collaboration with a strong global customer base.
Negative
  • Financial terms of the acquisition were not disclosed, adding uncertainty.

The acquisition of TesTneT Engineering GmbH by UL Solutions should be viewed in the context of the strategic expansion into the hydrogen technology sector. This move aligns UL Solutions with a growing global market centered on alternative fuels and decarbonization. Investors should consider that this positions UL Solutions to tap into hydrogen technology, which is anticipated to see significant growth due to global efforts towards low-carbon transportation and energy systems.

The lack of disclosed financial terms is a minor drawback, as it leaves investors with limited information to quantify the immediate financial impact. However, this acquisition could potentially lead to revenue growth and market expansion in the long term, as hydrogen technology adoption increases. With TesTneT's established global customer base, including automotive and OEM sectors, UL Solutions can expect to integrate and leverage these relationships to enhance revenue streams.

Short-term, the market might not see an immediate financial boon, but the long-term horizon looks promising as the market for hydrogen components and systems expands.

Hydrogen technology is increasingly recognized for its potential to contribute meaningfully to decarbonization. By acquiring TesTneT, UL Solutions reinforces its position in the burgeoning hydrogen market. This is an industry that’s expected to grow due to global regulatory pressures and the push towards sustainability. Hydrogen, as an alternative fuel, can play a critical role in reducing carbon emissions from transportation and industrial applications.

TesTneT’s expertise in comprehensive testing services for hydrogen storage systems and refueling stations positions UL Solutions to offer robust, reliable testing solutions, fostering safer adoption of these technologies. This strategic acquisition could help UL Solutions become a pivotal player in the energy transition landscape. However, the industry is still in its nascent stages and will require significant investment and time before large-scale adoption and profitability are realized.

Investors should be mindful of the long-term potential of this acquisition, viewing it as a strategic positioning for future growth rather than an immediate profit generator.

This acquisition enables UL Solutions to help advance the adoption of hydrogen-powered technologies globally.

NORTHBROOK, Ill.--(BUSINESS WIRE)-- UL Solutions Inc. (NYSE: ULS), a global leader in applied safety science, today announced the acquisition of TesTneT Engineering GmbH, a Germany-based leader in hydrogen component and system testing, deepening our expertise in alternative fuels and enhancing our ability to impact global decarbonization efforts.

With headquarters outside Munich and a second location near Vancouver, Canada, TesTneT has a strong global customer base that includes the automotive sector and top-tier original equipment manufacturers of hydrogen components and systems.

Hydrogen plays a critical role in the transition to low-carbon transportation and energy systems. The acquisition strengthens UL Solutions’ position in the hydrogen industry, adding TesTneT’s advanced testing capabilities and capacity and its deep understanding of customer challenges.

“Hydrogen technology is increasingly important in the transition to sustainable energy, and as a global safety science leader in the energy transition, this is a promising field for us,” said Jennifer Scanlon, president and CEO of UL Solutions. “The addition of TesTneT will enable us to better collaborate with our customers to help advance the safe adoption of hydrogen-powered technologies globally.”

Founded in 2009, TesTneT provides comprehensive testing services for various hydrogen storage systems, refueling stations and their components. It conducts hydraulic tests, destructive testing, materials testing and customized testing of storage tanks.

“TesTneT’s extensive scientific expertise, steadfast dedication to safety and deep commitment to strong customer relationships make the company an ideal fit for UL Solutions,” said Dr. Marius Herr, CEO and a co-founder of TesTneT. “We look forward to expanding our capacity and capabilities in new markets, and we proudly join the organization’s 15,000 employees working for a safer world.”

The transaction closed on July 8, 2024. Terms of the transaction are not being disclosed at this time.

About UL Solutions

A global leader in applied safety science, UL Solutions (NYSE: ULS) transforms safety, security and sustainability challenges into opportunities for customers in more than 110 countries. UL Solutions delivers testing, inspection and certification services, together with software products and advisory offerings, that support our customers’ product innovation and business growth. The UL Mark serves as a recognized symbol of trust in our customers’ products and reflects an unwavering commitment to advancing our safety mission. We help our customers innovate, launch new products and services, navigate global markets and complex supply chains, and grow sustainably and responsibly into the future. Our science is your advantage.

Media:

Kathy Fieweger

Senior Vice President - Communications

Kathy.Fieweger@ul.com



Investors:

IR@UL.com

Source: UL Solutions Inc.

FAQ

What company did UL Solutions acquire?

UL Solutions acquired Germany-based TesTneT Engineering on July 8, 2024.

How does the acquisition of TesTneT impact UL Solutions' capabilities?

The acquisition enhances UL Solutions' expertise in hydrogen technology and alternative fuels, adding advanced testing capabilities and a broad customer base.

Where are TesTneT's locations?

TesTneT has headquarters outside Munich, Germany, and a second location near Vancouver, Canada.

What services does TesTneT provide?

TesTneT offers comprehensive testing services for hydrogen storage systems, refueling stations, and their components, including hydraulic tests and materials testing.

Why is hydrogen technology important to UL Solutions?

Hydrogen technology is important for the transition to low-carbon transportation and energy systems, aligning with UL Solutions' focus on sustainability and safety.

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