SGS acquires majority stake in supply chain and operations consultancy Maine Pointe

02 July 2019 Consulting.us

Geneva-based multinational inspection, verification, testing, and certification company SGS has acquired a majority stake in Maine Pointe, a global supply chain and operational consulting firm.

Founded in 1878, SGS helps its clients navigate the complex world of international trade. The firm offers inspection and verification services to check condition, weight, quantity, and quality of traded goods at transshipment; testing and certification to ensure product quality and safety against regulatory standards; and verification to ensure compliance with global and local standards.

The company serves virtually every industry, working across the entire supply chain, from raw goods to final consumption. SGS has more than 97,000 global employees across a network of 2,600 offices and laboratories. The firm had revenues of CHF 6.7 billion (approximately $6.8 billion) in 2018.

SGS has now strengthened its high-value consulting capabilities with the acquisition of Maine Pointe, a supply chain consultancy headquartered in Boston. The consultancy helps clients drive EBITDA, cash, and growth across procurement, operations, and logistics. Founded in 2004, the company leverages its Total Value Optimization model to break through functional siloes, transforming the buy-make-move-fulfill supply chain to deliver the greatest value to customers at the lowest cost to business.
SGS acquires Maine Pointe Maine Pointe has a team of approximately 200 consulting experts, with further offices in Canada, Switzerland, and China. The consulting firm generated revenue of more than $70 million in 2018.

“We were attracted to SGS by its platform and expertise. We are excited about the opportunity to expand our complementary businesses by leveraging our expertise across SGS's global network,” Steven Bowen, chairman and CEO of Maine Pointe, said. “This combination will accelerate our vision of transforming our customers' supply chains into a competitive advantage on a global scale.”

As part of the transaction, Maine Pointe will keep its branding and operate as a distinctive business in SGS’ certification & business enhancement (CBE) business unit. The financial terms of the deal were not disclosed.

“Maine Pointe adds another layer of competence to the group and significantly accelerates our inroads into more advanced consultancy services in certification & business enhancement,” Frankie Ng, CEO of SGS, said. “The recent announcement of the disposal of PSC highlights the group strategy of focusing our capital allocation towards higher value-added services.”

In June, SGS sold Petroleum Service Corporation (PSC) to Aurora Capital Partners for $335 million. The firm employs approximately 3,500 people and is the oldest and largest US company providing product handling and site logistics services for the petrochemical, refining, midstream, and marine transportation end markets.