Bodycote (LSE:BOY) has agreed a recommended cash acquisition by Vulcan Alpha Bidco, a vehicle backed by New York-based private investment firm Veritas Capital.
The world's largest provider of heat treatment and specialist thermal processing services, Bodycote operates around 130 facilities across 22 countries with around 4,000 employees, serving aerospace, automotive, energy and industrial customers.
Shareholders will receive 940p per share in total value, made up of 932.8p in cash plus a 7.2p interim dividend they keep in full.
That cash consideration values Bodycote's equity at approximately £1.64 billion and implies an enterprise value of around £1.84 billion. It represents a 36.5% premium to the three-month volume-weighted average price before press speculation triggered the offer period in May, and a 44% premium to the price the day before Veritas first approached the board in July.
The deal follows a bidding process in which rival private equity firm CVC also submitted competing proposals, with Veritas ultimately edging ahead with its 31 August improvement to 940p from an earlier 914p offer.
Bodycote chair Daniel Dayan said the offer "delivers shareholders excellent value in cash" and praised progress on the group's Optimise, Perform and Grow strategic programme launched in December 2024.
Veritas has completed more than 145 acquisitions since 1992, including 15 aerospace and defence platform deals worth around $13 billion, a track record it says gives it relevant sector expertise for Bodycote.
The board unanimously recommends the deal, advised by Barclays, Goldman Sachs and Gleacher Shacklock.
The acquisition will require shareholder approval, alongside competition clearances, and is expected to complete in the first quarter of 2027.
News Intelligence what this means for the company
Bodycote has agreed a £1.64bn takeover by Veritas Capital at 940p per share—a 36.5% premium to the three-month VWAP before the bid process began in May. The deal ends a competitive auction with CVC and values the company at an enterprise value of £1.84bn. Completion is expected in Q1 2027, subject to shareholder and court approval plus regulatory clearance.
The takeover removes Bodycote from public markets and closes out the strategic programme launched in December 2024. Shareholders receive cash certainty at a material premium; the deal's completion timeline and regulatory dependencies now become the key execution risk.
Insights assembled by AI. Editor-reviewed and grounded in tickstock’s coverage and proprietary knowledge graph.
Content is for informational purposes only, not financial advice.
