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Veritas to buy Bodycote in 1.65 billion pounds private equity deal

Bodycote, which runs 130 sites in 22 countries with 4,000 employees, is valued at 940 pence per share by Veritas, with a rival bid from CVC possible.

Reported · Written up by our desk · M&A & Deals

Bodycote, the FTSE 250 industrial group, is set to be acquired by US private equity firm Veritas for 1.65 billion pounds, or 940 pence per share, or 1.85 billion pounds including debt, according to the UK market coverage by the Guardian Business.

Bodycote, described as a provider of heat treatment and specialist metallurgical technologies used to toughen components such as jet engine blades, has 130 sites across 22 countries and employs about 4,000 people, the outlet noted.

The Guardian Business reported that CVC, a European private equity firm, could still make a higher offer, pointing to the fact that Bodycote shares closed at 955 pence after the announcement.

The article also highlighted the valuation debate, citing an RBC analyst who said the offer appears only modestly above Bodycote’s pre bid price and roughly in line with the company’s longer term earnings valuation, despite Bodycote management pointing to progress on its late 2024 optimize, perform, grow strategy.

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