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'.
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