CVC has ended its pursuit of Bodycote, removing the final competing bid for the UK-listed thermal processing specialist and leaving Veritas Capital on track to complete its £1.85bn ($2.45bn) acquisition, including debt, according to a report by Reuters.
The private equity firm said on 28 September that it does not intend to make an offer for Bodycote, bringing an end to a bidding contest that had emerged between CVC and US-based Veritas.
Veritas secured the backing of Bodycote’s board earlier this month after increasing its proposal to 940 pence per share. CVC subsequently said it would consider its options, but has now decided not to proceed with a rival offer.
The two private equity firms had been competing for Bodycote after submitting proposals at broadly similar levels in August. Their interest followed the withdrawal in June of Apollo, which had previously been pursuing a takeover of the company with a proposal worth £1.52bn.
Bodycote provides thermal processing and metal treatment services to customers across industries including aerospace, defence, automotive and energy. Its services are used to improve the performance and durability of components and materials.
