BODYCOTE PLC ACQUIRES THE HEAT TREATMENT BUSINESS OF CURTISS-WRIGHT CORPORATION
MACCLESFIELD (U.K.) - Bodycote plc (LSE:BOY), the world's largest thermal processing services provider, announced today that it has acquired the heat treatment business of Curtiss-Wright Corporation (NYSE:CW) for a total consideration of US$ 52 million.
The consideration has been met from existing cash and bank facilities. In the twelve months to December 2011 the business delivered EBIT of US$ 7.7 million on sales of US$ 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 USA serving a wide range of industries but with a particular focus on commercial aerospace and oil & gas (34% of sales). It also features some key automotive accounts (20% of sales).
Commenting on the acquisition, Stephen Harris, CEO of Bodycote plc said: "We are delighted to be acquiring this heat treatment business, which fits extremely well with our existing organization and our overall strategy. Adding these nine sites to Bodycote's existing 35 US 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 & 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 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 & 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.
For further information, please contact:
Stephen Harris, Chief Executive +44 (0) 1625 505300
David Landless, Group Finance Director +44 (0) 1625 505300
Richard Mountain +44 (0) 20 7269 7186
Susanne Yule +44 (0) 20 7269 7291
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