Thermal processing services provider Bodycote has bought the heat treatment business of US aircraft manufacturer Curtiss-Wright Corporation, a bolt-on acquisition thought to fit 'extremely well' with the existing business, the group said.
Bodycote has purchased nine sites in northern and central America for a total consideration of $52m using existing cash and bank facilities. These serve a wide range of industries but have a particular focus on commercial aerospace and oil and gas.
"We are delighted to be acquiring this heat treatment business, which fits extremely well with our existing organization and our 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," said Bodycote's Chief Executive Officer Stephen Harris.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
He said that one facility, located in Lafayette, Louisiana, provides Bodycote with access to the "buoyant oil and gas market" in this part of the US.
The acquired business delivered earnings before interest and tax of $7.7m in the year to December 2011 on sales of $36.5m.
BC
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
-
How to invest in copperIt may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
