Apollo Global Management has made a £1.5bn approach for London-listed industrial services company Bodycote, according to a report by the Financial Times, marking the latest attempt by a private equity buyer to take a UK-listed business private.
Bodycote reportedly confirmed on Friday that it had received a conditional cash proposal from Apollo valuing the company at 885p per share. The company said the approach follows “a number of previous proposals” from Apollo regarding a potential offer.
Shares in the FTSE 250-listed business rose 18.4 per cent following the announcement, giving the company a market capitalisation of approximately £1.4bn.
Bodycote provides heat treatment, metal joining, and protective coating services to manufacturing customers across multiple sectors. Apollo now has until 19 June to announce a firm intention to make an offer, under UK takeover rules.
The move adds to a growing wave of private equity-backed take-private activity targeting UK-listed companies, as sponsors seek to capitalise on comparatively low public market valuations.
Recent deals include EQT’s proposed £10.6bn acquisition of Intertek, while KKR last year acquired Spectris following a competitive bidding process against Advent International.
Elsewhere, CVC Capital Partners and Nordic Capital completed the £5bn-plus acquisition of Hargreaves Lansdown, while Thoma Bravo took cyber security company Darktrace private in a deal valued at more than £4bn.
