CSA Group has entered into an agreement to sell its testing, inspection and certification (TIC) business to Netherlands-based Kiwa Group for cash proceeds of approximately $2.1 billion, subject to customary adjustments for cash, indebtedness, working capital and similar matters. The transaction will allow the Canadian Standards Association to continue as a standalone not-for-profit organization focused on its public-benefit standards mandate, while the TIC business joins a global TIC operator positioned to compete in an increasingly international market.
CSA Group comprises the Canadian Standards Association, a not-for-profit organization, and the TIC business, a large commercial subsidiary led by CSA Group Testing & Certification Inc. Proceeds from the sale will be placed in a newly formed, dedicated legal entity that is wholly owned by, but governed separately from, the Canadian Standards Association, serving as a diversified, lower-risk source of funding for its standards activities alongside continued member, government, and industry funding.
Headquartered in Toronto, the CSA TIC business operates 20 specialized laboratories in 12 countries and employs around 2,100 people. It serves approximately 11,000 customers, holds OSHA-recognized NRTL status in the United States and SCC accreditation in Canada, and supports customers across North America, Europe and Asia. Kiwa, founded in 1948 as a public-interest institute by the Dutch drinking water companies, employs over 12,000 people with offices in more than 40 countries, and is part of SHV, a privately held Dutch family company. Kiwa valued the acquisition at an enterprise value of €1.3 billion.
Following completion of the transaction, the Canadian Standards Association will continue to operate as a member-based, not-for-profit organization focused on its standards mandate to improve safety, health and sustainability. Its governance structure, including its current board of directors, membership model, and standards development processes, remains unchanged. Kiwa Group has committed to maintaining the TIC business' Canadian headquarters, continuity of employee pensions, and support for the business' long-term success.
In connection with the completion of the transaction, CSA Group's current president and chief executive officer, David Weinstein, will remain with the TIC business, and the board plans to appoint Mary Cianchetti, currently CSA Group's president of standards, as president and chief executive officer of the Canadian Standards Association.
"After a rigorous and thorough review of our strategic options for the TIC business, the Board of Directors is confident this is the right path for CSA Group," CSA board of directors chairperson Jane Peverett said in a press release. "The proposed transaction honours our obligation to protect the standards mandate that has served Canadians for over a century, while equipping the TIC business with a capable steward in Kiwa Group."
"What convinced us was the strong fit between CSA TIC and Kiwa Group. This is the kind of organization we know well, with deep technical expertise, long-standing customer relationships and a trusted mark," said Luc Leroy, CEO of Kiwa Group. "Both organizations were founded to serve the public interest and have developed cultures rooted in shared values. That is what our colleagues and customers will recognize in one another. We intend to build on the foundation CSA has created."
Stikeman Elliott LLP and Freshfields LLP are serving as legal advisors to the Canadian Standards Association, with Jefferies Securities, Inc. acting as its exclusive financial advisor. Eversheds Sutherland LLP and Borden Ladner Gervais LLP are serving as legal advisors to Kiwa N.V., with BofA Securities acting as its exclusive financial advisor.
The deal is expected to close in the fourth quarter of 2026.
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