Bodycote To Buy Ellison Surface Technologies In $200 Mln Deal - Quick Facts

(RTTNews) - Bodycote Plc (BOY.L), a provider of heat treatment and specialist thermal processing services, announced Tuesday that it entered into an agreement to acquire Ellison Surface Technologies.

The gross consideration for the acquisition will be $200 million or 154 million pounds.

When adjusted for tax benefits worth at least 30 million pounds, net consideration for the transaction is approximately 170 million pounds. Bodycote will settle the consideration using its existing committed credit facilities.

Completion of the deal is expected during the first quarter of 2020, contingent on various regulatory filings' processes.

It is anticipated that the Ellison business will be immediately earnings enhancing to the enlarged Bodycote business.

Ellison is primarily focused on the aerospace market. Ellison's business generated revenues of $50 million in 2018. Based on results year to date, it is anticipated that Ellison's revenue for 2019 will be $58 million. Ellison employs almost 400 people across six sites located across the United States, Canada and Mexico.

The company said Ellison's business, based in North America, is highly complementary to its existing Surface Technology business.

Following the acquisition, Ellison will be integrated into Bodycote's surface technology and aerospace business, which itself has seen strong structural growth in recent years.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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