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Veritas agrees to acquire UK industrial firm Bodycote in £1.65 billion deal

US buyout firm Veritas moves to take the metallurgical service provider private as European rival CVC considers a competing bid.

The short version

  • US private equity firm Veritas agreed to acquire UK metallurgical services provider Bodycote for £1.65 billion, or 940p per share.
  • The purchase, which totals £1.85 billion including debt, would end Bodycote's 54-year listing on the London Stock Exchange.
  • European private equity firm CVC is considering a rival bid after Bodycote shares closed above the offer price at 955p.

Key facts

  • Veritas agreed to acquire Bodycote for 940p per share, valuing the company's equity at £1.65 billion and enterprise value at £1.85 billion including debt.[The Guardian]
  • Bodycote employs 4,000 people across 130 facilities in 22 countries providing heat treatment and specialist metallurgical services.[The Guardian]
  • Bodycote shares closed at 955p following the acquisition announcement, exceeding Veritas's 940p per share offer price.[The Guardian]
  • The potential takeover would conclude Bodycote's 54-year presence on the London Stock Exchange.[The Guardian]
  • Telecoms company Gamma Communications and Scottish energy firm Capricorn also announced market departure deals valued at £1.1 billion and £292 million, respectively.[The Guardian]

What remains uncertain

  • Whether CVC will formalize a competing takeover bid for Bodycote remains unconfirmed.[The Guardian]

Sources