Bodycote has acquired the heat treatment business of Curtiss-Wright Corporation for a total consideration of $52 million. The consideration has been met from existing cash and bank facilities. In the 12 months to December 2011 the business delivered EBIT of $7.7 million on sales of $36.5 million. The acquisition is expected to exceed Bodycote’s cost of capital and be earnings enhancing in the first year. The business comprises nine sites in Northern and Central United States serving a wide range of industries but with a particular focus on commercial aerospace and oil and gas (34 percent of sales). It also features some key automotive accounts (20 percent of sales).
“We are delighted to be acquiring this heat treatment business, which fits extremely well with our existing organization and our overall strategy,” according to Stephen Harris, CEO of Bodycote. “Adding these nine sites to Bodycote’s existing 35 U.S. plants provides significant additional capability and a broader customer base in key regions. The acquisition includes three sites in Wichita, Kansas, providing Bodycote with a major presence in this strategically important aerospace industry hub. The facility in Lafayette, Louisiana, provides access to the buoyant oil and gas market in this part of the United States, while the five northern plants fit well with Bodycote’s automotive and general industrial network, enhancing service to existing customers and extending our geographic coverage.”
With more than 170 accredited facilities in 27 countries, Bodycote plc is the world’s largest provider of thermal processing services. Through heat treatment, metal joining, surface technology, and Hot Isostatic Pressing (HIP) Bodycote improves the properties of metals and alloys, extending the life of vital components for a wide range of industries including aerospace, defence, automotive, power generation, oil and gas, construction, medical, and transportation. Customers in all of these industries have entrusted their products to Bodycote’s care for more than 30 years. For more information visit www.bodycote.com.
