Two new specialist technology focused businesses, Lake City Heat Treat and Stack Metallurgical Group, have been acquired by Bodycote.
Bodycote has agreed to acquire Lake City Heat Treat based in Warsaw, Indiana, a Medical market HIP and vacuum heat treatment business; and Stack Metallurgical Group based in the Pacific Northwest of the U.S., a key provider of HIP, heat treatment and metal finishing services.
The businesses are complementary to the commercial heat treater’s existing operations and will both expand its geographic footprint in North America and provide additional customer reach. Comprising of two HIP and three heat treatment sites, the businesses will be integrated into Bodycote’s existing specialist technologies business and aerospace, defense and energy classical heat treatment business respectively.
Stephen Harris, Group Chief Executive of Bodycote plc, commented, “These investments are an important and exciting enabler of our strategy to further enhance and grow our Specialist Technologies businesses. In addition, they will also expand our footprint in Aerospace and Medical heat treatment on the West Coast and in Indiana in the U.S."
The heat treater also announced plans to open a new HIP plant utilizing one of their existing sites in greater Los Angeles. The capacity is intended to support the rapid growth in space and civil aviation markets in the Los Angeles area.
The combined gross consideration for the acquisitions is 119 million pounds ($145 million) on a cash and debt free basis. The net economic consideration is approximately 106 million pounds ($130 million).
