Veritas Capital outbids CVC in £1.65bn Bodycote deal
US private equity firm Veritas Capital has agreed to acquire UK-listed engineering specialist Bodycote for approximately £1.65bn, after increasing its offer to move ahead of rival bidder CVC Advisers, according to a report by Bloomberg.
Private equity firm Veritas Capital has secured the acquisition of UK engineering specialist Bodycote for approximately £1.65 billion, surpassing the offer from rival CVC Advisers, according to Bloomberg. Veritas will pay 940 pence in cash per Bodycote share under the proposed transaction, with the inclusion of debt bringing the deal's enterprise value to around £1.85 billion.
The latest bid is higher than both Veritas' and CVC's previous offers. However, CVC has indicated that it is evaluating its options and advising Bodycote shareholders to refrain from taking any action at this time. Bodycote's share price surged by up to 4.4% following the announcement, trading above Veritas' offer price, as investors anticipated a potential further bid from CVC.
The company specializes in heat treatment and surface coating services for metal components, catering to industries such as aerospace. Bodycote's processes aim to enhance component durability and resistance to extreme temperatures and wear. Lazard is advising Veritas on the Bodycote acquisition, while the company has appointed Barclays, Goldman Sachs, Gleacher Shacklock, and Jefferies as advisers.
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