Acquisitions

Bodycote International PLC 17 May 2000 For further information, please contact: John Chesworth, Managing Director David Landless, Finance Director Bodycote International plc Tel: 01625 505300 Edward Bridges/Scott Fulton Financial Dynamics Tel: 020 7831 3113 BODYCOTE INTERNATIONAL PLC Acquisition of heat treater in Canada and coatings companies in France, Sweden and United States Bodycote International plc ('Bodycote' or 'the Group'), the world's leading supplier of metallurgical services to industry, is pleased to announce a number of acquisitions. For a total consideration of £11m, the Group has acquired four separate operations, bringing combined net assets of £4.3m and annualised sales of £8.4m. 1.Newmarket (Ontario) heat treatment operations of Bohler Uddleholm Thermo- Tech Bodycote North America Inc. has acquired the operations Bohler-Uddeholm Thermo- Tech, Inc. in Newmarket Ontario. The Newmarket operation, now to be known as Bodycote Thermal Processing - Newmarket, Inc., provides high-volume continuous and batch heat treating. The facility is a highly accredited company serving primarily the automotive sector. This is a significant enhancement of Bodycote's existing position in heat treatment and material testing in the Ontario market. Consideration for the purchase was C$14 million (£6.0 million), paid in cash. Sales of the Newmarket operation for the year ended 31 December 1999 amounted to C$8.7 million (£3.7 million), and earnings before interest and tax, on an ongoing basis, were C$2.7 million (£1.1 million), with net assets acquired were C$2 million (£852,000). 2. Swedish decorative coatings, On 16 March 2000, Bodycote Thermotreat AB, based in Sweden, acquired the entire issued share capital of Industricrom Fastighets AB of Anderstorp, Sweden for a cash consideration of SEK17.6 million (£1.3 million). In the year to 30 June 1999 the group had sales of SEK14 million (£1.0 million) with profits before tax of SEK2.8 million (£200,000) from net assets of SEK13 million (£930,000) The company provides decorative coatings for plastics to customers in the construction and electronics sectors. 3. Procolor, French aluminium coatings operation On 27 April 2000, Bodycote HIT sa, the group's French subsidiary, acquired Societe Procolor, based in Toulouse, for a cash consideration of FFr18.8 million (£1.7 million). In the year to 31 December 1999 Procolor had pre-tax profits of FFr 2.4 million (£210,000) from sales of FFr26.3 million (£2.4 million). Net assets are FFr 4.6 million (£410,000). Procolor is a subcontractor for the construction sector providing surface coatings for aluminium that is increasingly being substituted for more traditional materials. 4. Diamond Black, unique ceramic coatings in United States Bodycote also announces the acquisition of the business and assets of Diamond Black Technologies Inc. a coatings company based in Conover, North Carolina. Diamond Black's unique ceramic coatings, specifically designed to provide exceptional wear, lubricity and anti-corrosion properties offer excellent versatility for a wide number of applications. These specialist coatings processes are patented worldwide, and will enhance Bodycote's existing capabilities in PVD coatings. In a full year sales by Diamond Black are forecast to be $2 million from net assets acquired of $3.1 million. Commenting on these acquisitions, John Chesworth, Managing Director of Bodycote International plc, said today: 'These acquisitions provide Bodycote with additional critical mass in our core heat treatment and coatings activities and further broaden the geographical presence of our business'.

Companies

Bodycote (BOY)
UK 100

Latest directors dealings