TPG Rise Climate to Acquire AmSpec: Paving the Way for Sustainable Energy Transition

In a significant move towards promoting sustainable energy practices, TPG Rise Climate has announced its definitive agreement to acquire AmSpec Group, Inc., a leading Testing, Inspection, and Certification (TIC) company specializing in energy, commodities, and fuels. TPG Rise Climate, the climate investing strategy of TPG's global impact investing platform, aims to leverage AmSpec's expertise to accelerate the global energy transition and drive growth in emerging renewable fuels and commodities markets.

Founded in 1986, AmSpec operates an extensive global network of inspection sites and laboratories, spanning 61 countries. With strategic locations at key industrial centers, ports, and trade hubs, AmSpec plays a pivotal role in testing and certifying the performance and emission qualities of fuels and commodities throughout the value chain. By monitoring and reporting to regulators and independent certification bodies, AmSpec contributes to emissions control and enforcement of conventional fuels, while also facilitating the adoption of alternative fuels, such as biofuels, hydrogen, and sustainable aviation fuel.

The partnership with AmSpec aligns with TPG Rise Climate's vision of driving the global energy transition and investing in companies that address climate-related challenges. By acquiring AmSpec, TPG Rise Climate gains access to a best-in-class lab network that will play a crucial role in processing, testing, and certifying the ever-increasing volume of complex renewable fuels. This strategic move positions TPG Rise Climate to enter new markets and capitalize on the changing landscape of global supply chains.

As part of the acquisition, Marc Mezvinsky, a Partner at TPG and a senior member of its climate investing team, will join AmSpec's Board of Directors. Mezvinsky brings valuable expertise to the table, having served as the former chair of Goldman Sachs' clean energy technology practice. Alongside Mezvinsky, Roger Stone and Tracy Wolstencroft from TPG Rise Climate will also join the board, adding their extensive experience in climate investing and executive leadership.

Both TPG Rise Climate and AmSpec are enthusiastic about the partnership and the growth opportunities it presents. TPG Rise Climate's vision, resources, and global network, combined with AmSpec's industry-leading services, will enable them to become the verification provider of choice in the market for emerging renewable fuels and commodities. The existing majority shareholder of AmSpec, Olympus Partners, will retain a minority interest in the company, further solidifying the commitment to its continued success.

Given their deep expertise in analyzing and measuring various products, AmSpec has established itself as a leader in the industry. The company's commitment to innovation and service has set them apart and positioned them to be at the forefront of the energy transition. By joining forces with TPG Rise Climate, AmSpec gains the support and resources needed to drive further growth and capitalize on the opportunities presented by global supply chain transformations.

The transaction is subject to regulatory review and customary closing conditions, with the expected completion in the fourth quarter of 2023. Goldman Sachs and Baird provided financial advisory services to AmSpec, while Morgan Lewis acted as their legal counsel throughout the transaction.

TPG Rise Climate, with its climate-focused investment platform, aims to leverage its diverse skills, strategic relationships, and global network to drive climate solutions. From growth equity to value-added infrastructure, TPG Rise Climate takes a broad-based sector approach to investing in clean electrons, clean molecules and materials, and negative emissions. Jim Coulter, TPG Founding Partner and Executive Chairman, serves as the Managing Partner of TPG Rise Climate, while former U.S. Treasury Secretary Hank Paulson assumes the role of Executive Chairman.

AmSpec, as an independent TIC company, has been providing accurate analysis and measurement services globally for over 35 years. From petroleum and petrochemicals to food and agricultural products, AmSpec's expertise spans a wide range of industries. The company's membership in prominent industry associations, including the TIC Council and various trade associations, further reinforces its commitment to maintaining the highest standards of quality and compliance.

Olympus Partners, the private equity firm that managed AmSpec, focuses on providing equity capital for middle market management buyouts and companies requiring expansion capital. With funds exceeding $8.5 billion, Olympus Partners has a long-term investment approach and is actively involved in various industries, including business services, consumer products, healthcare services, financial services, and manufacturing.

The acquisition of AmSpec by TPG Rise Climate marks a significant milestone in the pursuit of sustainable energy practices. By combining their strengths in testing, inspection, and certification, these industry leaders are poised to drive the global energy transition, support emerging renewable fuels, and contribute to a greener future.