Bodycote Regulatory News (BOY)

The following amendments have been made to the 'Acquisition of Ellison Surface Technologies ' announcement released on Tuesday 24 December 2019 at 7.00am under RNS No 9503X

The tax benefits and net consideration figures in paragraph 3 were incorrectly denominated in £ rather than $.

All other details remain unchanged.

The full amended text is shown below.

24 December 2019

Bodycote plc

Acquisition of Ellison Surface Technologies

Bodycote, the world's leading provider of heat treatment and specialist thermal processing services, has entered into an agreement to acquire Ellison Surface Technologies ('Ellison'), creating one of the world's largest providers of thermal spray and engineered coating surface technology services to the aerospace industry.

Ellison's business, based in North America, is highly complementary to Bodycote's existing Surface Technology business. It is primarily focused on the aerospace market. It will be integrated into Bodycote's surface technology and aerospace business, which itself has seen strong structural growth in recent years.

Gross consideration for the acquisition will be $200 million (£154 million). When adjusted for tax benefits worth at least $30m, net consideration for the transaction is approximately $170 million (£131 million). The consideration will be settled using Bodycote's existing committed credit facilities.

Ellison's business generated revenues of $50m (£38m) in 2018, with associated pro-forma EBITDA of $8m (£6m). Based on results year to date, it is anticipated that Ellison's revenue for 2019 will be $58m (£44m) with pro-forma EBITDA of $12m (£9m). This expected revenue growth of 16%, and its associated 50% increase in pro-forma EBITDA, reflects the fact that Ellison has been successfully gaining share in the civil aviation business, which will also provide a solid foundation for further revenue and profit growth in future years. It is anticipated that the Ellison business will be immediately earnings enhancing to the enlarged Bodycote business. Ellison employs almost 400 people across six sites located across the United States, Canada and Mexico.

Commenting on the transaction, Stephen Harris, Group Chief Executive of Bodycote plc, 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; it is anticipated that the transaction will complete during the first quarter of 2020.

Bodycote was advised by Credit Suisse on this transaction, while the sellers were advised by Lazard.

Acquisition Update Conference Call

Stephen Harris and Dominique Yates will be hosting a conference call for analysts and investors to discuss the acquisition in detail at 8.00am on January 7th.

Participant's dial in number : +443333009261 (Direct)Participants will be asked for names only, no PIN required

For further information, please contact:

Bodycote plc

Stephen Harris, Group Chief ExecutiveDominique Yates, Chief Financial Officer

Tel No +44(0) 1625 505300

FTI Consulting

Richard Mountain

Susanne Yule

Tel No +44 (0) 2037271340