Bodycote turns up the heat with US purchase

GLOBAL engineering group Bodycote is strengthening its US footprint with a £32.4m acquisition of Curtiss-Wright Corporation’s heat treatment business.

The group, which has operations in Birmingham, Wolverhampton and Coventry, is funding the deal from existing cash and bank facilities.

The acquired business has nine sites in northern and central US, which serve a range of industrial sectors, with a particular focus on aerospace and oil & gas (34% of sales) and automotive (20% of sales).

During financial year 2011 the business delivered EBIT of $7.7m (£4.8m) on sales of $36.5m (£22.8m).

Bodycote said the acquisition is expected to be earnings enhancing in the first year.

Chief executive Stephen Harris said the acquisition “fits extremely well” with the group’s existing operation and its overall strategy.

“Adding these nine sites to Bodycote’s existing 35 US plants provides significant additional capability and a broader customer base in key regions.

“The acquisition includes three sites in Wichita, Kansas providing Bodycote with a major presence in this strategically important aerospace industry hub.

“The facility in Lafayette, Louisiana provides access to the buoyant oil & gas market in this part of the United States, while the five northern plants fit well with Bodycote’s automotive and general industrial network, enhancing service to existing customers and extending our geographic coverage.”