Acquisition
Bodycote International PLC
19 January 2001
19th January 2001
Bodycote makes three acquisitions in Europe and North America
Bodycote International plc, the international metallurgical processing group,
announces the completion of three acquisitions by the heat treatment,
materials testing and metallurgical coatings operations of the group in Europe
and North America. These acquisitions, made for a total cash consideration of
£4.9 million, have combined annualised sales of £11.5 million and annualised
profits before tax of £2.2 million
Envirolab - Canada
Bodycote Technitrol Inc, a wholly owned subsidiary of Bodycote International
plc, acquired Envirolab of Sainte Foy near Quebec City on 27 October 2000 for
a cash consideration of Can$2 million.
Envirolab provides specialised analytical services for industrial hygiene and
the environment to government, food suppliers, water resource bodies, mining
and smelting industries and has many prestigious accreditations.
The company's net assets at completion are Can$1.16 million. Profit before tax
on an ongoing basis is forecast at Can$612,000 (£272,000) on sales of Can$4.7
million (£2.1 million).
The purchase of Envirolab will complement Bodycote's existing facilities at
Technitrol and Analex in Quebec.
Woburn - Massachusetts
On 20 November 2000, Bodycote North America Inc. acquired the operations and
assets of the Aerospace and Special Processes ('ASP') Division of Industrial
Heat Treating, Inc., Woburn, Massachusetts.
The ASP Division provides high-tech heat-treating and braze services to the
aerospace industry. The operations, equipment and personnel will be relocated
to Bodycote's nearby Ipswich Massachusetts facility. The ASP Division's sales
for the year ended 31 December 1999 amounted to US$1 million (£705,000).
Consideration for the purchase was US$750,000 (£521,000), paid in cash.
The acquisition broadens Bodycote's heat-treating and brazing services and
expertise offered to the New England markets.
Celsius - Sweden and Germany
On 19 December 2000, Bodycote's Swedish subsidiary, Bodycote Thermotreat AB,
acquired from Saab AB the coatings operations of Celsius Material Technology
GmbH and Yttec AB (together 'Celsius') operating from two sites in Sweden and
one in Germany. Celsius offers anodising and other specialist coatings to the
automotive, aerospace, telecommunication, lighting and precision tooling
industries. Consideration for the purchase was SEK46 million (£3,521,000),
paid in cash.
In the year 2000 the businesses had combined sales of SEK114 million and
profits before tax of SEK22.5 million from net assets of SEK26.5 million.
Bodycote now has 13 coatings plants in Sweden, which are geographically spread
to provide logistical and market synergies to Bodycote's coatings customers in
the automotive, engineering, electronics and telecom sectors.
Commenting on these acquisitions, John Chesworth, Managing Director, said
'Our announcement today highlights how the group can continue to expand in its
chosen markets at prices that allow Bodycote to create value for shareholders.
We have consistently stated that our industry remains highly fragmented and
that, in addition to organic sources, our growth will come from selected
acquisitions.'
Preliminary Results
Bodycote will be making its preliminary results announcement for the year
ended 31 December 2000 on 21 March 2001.
For further information:
John Chesworth, Managing Director
Bodycote International plc
Tel: 01625 505300
Scott Fulton
Financial Dynamics
Tel: 020 7831 3113