The private equity manager Veritas Capital has announced the purchase of the British thermal processing services provider Bodycote for £1.64 billion (around €1.9 billion), following an intense bidding war between Veritas and the CVC fund for control of the company.
According to the terms of the agreement, Veritas will pay 940 pence (€10.97) for each Bodycote share. Of that amount, 932.8 pence (€10.98) will be paid in cash and the remaining 7.2 pence (€0.09) corresponds to the dividend for the fiscal year 2026.
The agreed price implies a premium of 37.5% over the volume-weighted average price of Bodycote shares in the three months prior to May 21, 2026, the date on which the first proposal by the company was made public. Compared to the closing on July 7, the last trading day before Veritas's initial offer, the premium increases to 45%.
With this operation, Bodycote's enterprise value stands at £1.852 billion (€2.162 billion). The dividend intended for shareholders is expected on November 5, for all those listed in the register at the market close on October 2.
"Veritas believes that Bodycote represents an attractive opportunity to acquire a global leading provider of metallurgical technology solutions, with differentiated technical capabilities, deep expertise in materials science, a global network, and long-standing relationships with customers in attractive end markets," the buying firm indicated in a statement sent to the London Stock Exchange.
Bodycote has a network of about 130 plants spread across 22 countries and employs nearly 4,000 people. Its business focuses on thermal processing services that enhance the performance, strength, and reliability of metal components for clients in the aerospace, automotive, energy, and general industry sectors.
Veritas has stated that Bodycote's expansion prospects will be strengthened once it leaves the public markets and becomes integrated into its portfolio.
The sale process has been dominated by the bidding war between CVC and Veritas Capital, until the latter presented an improved proposal for Bodycote that received the approval of the board of directors.
"The Board of Directors of Bodycote considers that this offer from Veritas reflects the high quality of the business and the management of Bodycote, and offers shareholders excellent cash value. The Bodycote team has worked hard for many years to consolidate a leadership position in our sector, including the recent success in implementing the Optimize, Performance, and Growth initiatives," stated Bodycote's chairman, Daniel Dayan.
"Bodycote has established itself as a global leader in providing essential technologies for high-performance metallurgy in various critical markets. We admire what Bodycote and its talented team have achieved, and we look forward to leveraging our extensive experience in the sector and our track record of collaboration with leading companies in the high-performance industrial supply chain to support Bodycote's continued development and drive a new phase of growth," affirmed James Dimitri, partner and co-head of Veritas' flagship private equity division.