Bodycote acquired by VERITAS CAPITAL

The United States private equity firm Veritas Capital has agreed to acquire the UK-listed engineering company Bodycote, outbidding competing financial sponsors to secure the takeover. Announced in September 2026, the definitive agreement values the target at an enterprise value of £1.9B, a figure that fully incorporates the assumption of the company's existing debt. Under the terms of the recommended transaction, the acquiring fund will pay 940 pence per share, comprising 932.8 pence in cash and a 7.2 pence interim dividend. This financial package represents a substantial 34.5% premium to the company's undisturbed closing share price prior to the emergence of initial takeover speculation in May. The successful execution of this bid supersedes previous proposals submitted during the competitive auction process, notably outmaneuvering rival sponsor CVC Advisers, which had tabled an offer of approximately 915 pence per share in August, as well as an earlier £1.52 billion proposal from Apollo that was subsequently withdrawn. Strategically, this cross-border public-to-private buyout capitalizes on the perceived valuation discount currently affecting UK equities—a dynamic where British stocks trade at lower market multiples compared to their US and European counterparts due to the macroeconomic impacts of Brexit and a depreciated pound sterling. For the acquirer, the transaction provides an opportunity to internalize a critical tier-one supply chain partner specializing in extreme-condition metallurgy, thereby strengthening its broader industrial and engineering investment platform. The deal execution mobilized an extensive financial advisory syndicate. On the buy-side, Veritas Capital mandated Lazard as its exclusive financial advisor. On the sell-side, Bodycote was advised by a comprehensive banking consortium comprising Barclays, Goldman Sachs, Gleacher Shacklock, and Jefferies. Completion remains subject to customary regulatory approvals and shareholder consent, while competing bidder CVC evaluates its final position regarding the ongoing process.