SGS has divested its US powertrain testing operations to Columbia River Partners, enabling a strategic refocus on core competencies while providing growth opportunities for the investor in the evolving automotive testing market.

Target Information

SGS has finalized an agreement to divest its US powertrain testing operations to Columbia River Partners. This strategic decision is part of SGS's ongoing portfolio evolution, enabling it to concentrate on its core competencies. The powertrain testing division specializes in services pertaining to combustion engines, environmental simulations, powertrain component assessments, and additive testing. Currently, this division employs over 100 technicians across seven locations in the United States, generating approximately USD 27 million in revenue in 2022. The divestment will take effect on October 1, 2023.

Industry Overview

The US automotive industry is a cornerstone of the nation's economy, constantly evolving through advancements in technology and a growing focus on sustainability. The increased demand for electric vehicles (EVs) has shifted consumer preferences, prompting manufacturers to re-evaluate their powertrain systems. Consequently, testing and certification services such as those offered by SGS have become essential in ensuring compliance with rigorous environmental regulations and performance standards.

Environmental challenges and stricter regulations are reshaping the automotive testing landscape in the US. As manufacturers strive to enhance their sustainability practices and lower emissions, the need for comprehensive testing services h