US private equity firm Veritas Capital has agreed to buy British thermal processing services company Bodycote in a £1.85bn deal including debt.
The board of Bodycote confirmed it will back the 940 pence per share offer. The bid outperforms rival suitor CVC and represents a 34.5% premium to the closing price before takeover speculation emerged in May.
Under the terms of the agreement, shareholders will receive 932.8 pence in cash along with a 7.2 pence interim dividend. Bodycote shares rose as much as 4.8% to 957 pence following the announcement, reaching their highest level since September 2021.
Veritas and CVC had previously submitted proposals of around 914 pence and 915 pence per share in August. Those offers followed two months after US investment firm Apollo walked away from a £1.52bn proposal for the company.
Veritas noted that Bodycote’s exposure to aerospace, defence, and performance industrial markets fits closely alongside existing holdings such as aeroengine technology firm Chromalloy.
