CVC drops Bodycote pursuit, clears path for Veritas' $2.5 billion takeover

By Reuters News

Sept 28 (Reuters) - Private equity firm CVC Advisers said on Monday it does not plan to make an offer for Bodycote BOY.L, abandoning its pursuit of the British thermal processing services group.

The decision clears the way for US-based private equity firm Veritas Capital, which won Bodycote's backing earlier this month for its £1.85 billion ($2.45 billion) takeover offer, including debt.


Here are a few details:

  • CVC and Veritas had been vying for the British firm, submitting near-identical proposals in August, just two months after U.S. investment firm Apollo APO.N retreated from its £1.52 billion approach for Bodycote.

  • Earlier this month, Veritas pulled ahead by sweetening its bid to 940 pence a share, prompting CVC to say it would evaluate its options regarding the deal.

  • Bodycote offers heat-treatment and metal-processing services to the aerospace, defence, automotive and energy sectors.

  • The interest in the company reflected a wider trend of foreign buyers, particularly private equity firms, targeting UK-listed companies, which are argued to be undervalued.

($1 = 0.7557 pounds)

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