CVC Drops Bodycote Bid as Veritas’ Advances $2.45B Takeover

CVC Advisers, the private equity firm, said on Monday it does not plan to make an offer for Bodycote, abandoning its pursuit of the British Thermal processing services group. This decision clears the way for US-based private equity firm Veritas Capital, which won Bodycote’s backing earlier this month for its $2.45 billion takeover offer, including the debt. 

CVC and Veritas both sought to acquire the UK company with nearly identical August bids, following an earlier pursuit by Apollo. Both companies competed to acquire Bodycote, putting forward almost identical offers in August, just two months after US firm Apollo abandoned its  £1.52 billion attempt to buy the UK-listed company headquartered in Macclesfield, England. 

Veritas later took the lead by raising its proposal to 940 pence per share, leading CVC to announce it was reconsidering its position on the deal.

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Bodycote specialises in heat treatment and metal processing solutions for industries including aerospace, defence, automotive and energy. This intense takeover battle highlights a growing pattern of international investors and private equity groups targeting UK listed firms seen as trading at a discount. 

About Bodycote:

Bodycote is the world’s largest and most recognised provider of advanced heat treatment and specialised metallurgical technology. It has been a global leader in thermal processing, helping customers push the boundaries of performance. From aerospace engines to life-saving medical devices, our work enables safer, stronger, and more reliable products – in the harshest operating environments on earth. 

Processing millions of components annually. They operate the industry’s most extensive network of thermal processing sites – enabling fast local service with global consistency. And they are leading the way in sustainable innovation, including their growing number of zero-emission facilities.