Three new acquisitions for Bodycote's Testing G...

Three New Acquisitions by Bodycote's Testing Group Bodycote International plc, the specialist thermal processing and testing services company, is pleased to announce the acquisitions of Saab Metech AB, ACT Laboratories and Warrington Fire Research Group Ltd. These three transactions for the Testing Business Unit, for which the total consideration was £29 million in cash, advance the Group's strategy of growing its Testing business and bring the total cash consideration spent on Testing acquisitions during 2006 to date to £45 million. Saab Metech AB Bodycote has agreed to acquire the entire share capital of Saab Metech AB and its subsidiaries, subject to regulatory approval. Saab Metech will be integrated within the Bodycote Testing Group, and will form a new division providing precision engineering services in the field of metrology. Saab Metech is a well established business with a market leading position in the Nordic Region. It is also present in Germany servicing the electronic, defence, telecom, medical, electrical and mechanical engineering markets. The metrology industry is experiencing a period of sustained growth as the demand for outsourced service solutions increases. It is currently a fragmented market offering significant consolidation opportunities. Saab Metech and Bodycote Testing Group have significant customer synergies and the acquisition will further enhance Bodycote's service portfolio to its customers. ACT Laboratories Bodycote also announces the bolt-on acquisition of the Testing & Engineering Services division of ACT Laboratories, from ACT Holding Inc. The acquisition of ACT Laboratories represents a major opportunity for Bodycote to expand capabilities and capacity in the automotive testing market. There are many synergies to exploit between the services currently offered by Bodycote's Detroit and Mississauga facilities and those provided by ACT Laboratories. Specialty services such as for engine cooling and exhaust system testing enhance Bodycote's existing array of automotive services. The technical staff, well recognised in the marketplace for their expertise and customer service, will transfer to Bodycote and assist in the growth of the business. The acquired business will operate as part of the Bodycote Testing Group America's network of laboratories. ACT Laboratories, located in both Hillsdale and Wixom, Michigan USA are A2LA accredited to the ISO 17025 standard. The laboratories also maintain approvals from the major OEMs and Tier One suppliers. Warrington Fire Research Group Ltd Lastly, Bodycote is pleased to announce the bolt-on acquisition of Warrington Fire Research Group Ltd. including its subsidiaries and joint ventures located in the UK, Belgium, France, Italy, Hong Kong, Dubai and Australia. Warrington Fire is an internationally recognised centre of excellence in the area of fire product & system testing, related consultancy, inspection and certification. This acquisition complements Bodycote's existing Canadian fire testing centre, bringing expertise in European fire testing standards and extending our geographical reach. John Hubbard, Chief Executive of Bodycote International, said: "We are delighted to welcome Saab Metech, ACT Laboratories and Warrington Fire to the Bodycote Group. These acquisitions further strengthen Bodycote's Testing operations. "Bodycote is keen to support management's aspirations to expand the Metech company through the growing demand for outsourced service solutions together with additional bolt on acquisitions in new geographical markets. ACT Laboratories further strengthens our presence in the North American automotive testing market, whilst the acquisition of Warrington Fire represents a significant step in expanding our coverage in fire testing." For further information, please contact: John D. Hubbard, Chief Executive David Landless, Finance Director Bodycote International PLC Tel no: 01625 505300 Jon Simmons Sally Lewis Financial Dynamics Tel no: 020 7831 3113

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