Veritas Capital Acquires Bodycote for $2.5 Billion, Outbidding Rivals
Veritas Capital's Strategic Acquisition of Bodycote
Deal Overview and Competitive Bidding
Sept 1 (Reuters) - U.S.-based private equity firm Veritas Capital agreed on Tuesday to buy Britain's Bodycote in a £1.85 billion ($2.51 billion) debt-inclusive deal, outbidding CVC in a contest that also saw Apollo Global walk away earlier this year.
About Bodycote
Bodycote is a thermal processing services provider serving the aerospace, defence and industrial sectors.
Details of the Acquisition Offer
The 940 pence-per-share offer comprises 932.8 pence in cash plus a 7.2 pence interim dividend that shareholders will retain, and represents a premium of about 34.5% to Bodycote's share price before takeover speculation first emerged in May.
Board Recommendation
Bodycote's board has unanimously recommended the deal.
Veritas Capital's Portfolio and Strategic Fit
Veritas, which manages about $54 billion in assets and has completed more than 145 acquisitions since its founding in 1992, said Bodycote's exposure to aerospace, defence and performance industrial markets aligned closely with its existing portfolio, which includes aeroengine technology firm Chromalloy and maintenance provider StandardAero.
Financial Context
($1 = 0.7383 pounds)
Reporting Credits
(Reporting by Yamini Kalia and Amna Mariyam in Bengaluru; Editing by Ronojoy Mazumdar and Sherry Jacob-Phillips)
