Bodycote, the world's largest thermal processing services provider, has bought US-based Carolina Commercial Heat Treating from Bluewater Thermal Solutions for 68m dollars.
The company also commented that trading from July to September was "in line with expectations".
The consideration of $68m has been met from existing cash resources and bank facilities. In the 12 months to September the business delivered earnings before interest tax, depreciation and amortisation (EBITDA) of $11.7m on sales of $34.9m.
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The acquisition is expected to achieve a return on investment well in excess of Bodycote's cost of capital and be accretive to earnings in the first year of ownership.
Commenting on the acquisition, Stephen Harris, Chief Executive Officer of Bodycote said: "The acquisition of this pre-eminent heat treatment business in the South Eastern USA and Southern Indiana represents a considerable step forward in the delivery of Bodycote's strategy in North America.
"The business is of high quality and has few local competitors. This region of the USA continues to be amongst the highest recipients of inward investment in North America with many domestic and overseas corporations establishing facilities and supply chains in the area. The recent announcements from both Boeing and Airbus concerning their new manufacturing operations in the region underscore this trend. We expect the business to become more focused on aerospace and energy markets over time as the supply chains for these industries expand.
"The acquisition also represents the first meaningful exposure for Bodycote to the off-road vehicle and heavy truck market in the USA. While demand from these particular sectors is expected to be lower in the near term, the medium and longer term prospects for this part of the business offer attractive returns".
Commenting on trading for Bodycote globally, Harris added: "Trading for the period July 1st to September 30th 2012 was volatile, but overall has been in line with expectations".
Bodycote will publish its interim management statement on November 16th.
Consensus expectations for the year ending December 31st are for revenues of £597.04m with pre-tax profits of £88.68m, delivering earnings per share of 34.98p.
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