Bodycote lines up £154M deal

Bodycote has entered into an agreement to acquire Ellison Surface Technologies


Ellison's business – based in North America – is considered to be highly complementary to Bodycote's existing surface technology operation, and is primarily focused on the aerospace market.

It generated revenues of £38m in 2018, with associated pro-forma EBITDA of £6m. Based on results for the year to date, it is anticipated that Ellison's income for 2019 will be £44m with pro-forma EBITDA of £9m.

Gross consideration will be £154m, or £131m when adjusted for tax benefits worth at least $30m.

Stephen Harris, group chief executive of Bodycote, said: "Ellison's business is one that we have long respected and is a perfect strategic fit for Bodycote's aerospace and specialist technologies' businesses.

"Ellison has been successful in winning new business in recent years and it will be very complementary to Bodycote's existing Surface Technology business."

Completion of the transaction is contingent on various regulatory filings processes, and is anticipated for the first quarter of 2020.

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