Private investment major Apollo Global Management has abandoned its proposed £1.5bn takeover of London-listed Bodycote plc, marking another setback in the firm’s efforts to acquire listed UK industrial assets, according to a report by the Financial Times.
The US private equity group confirmed it will not proceed with a conditional offer of £8.85 per share, first announced last month, and said it does not intend to make a firm bid for the company at this stage.
Under UK takeover rules, Apollo is now restricted from launching another offer for Bodycote for a period of six months, unless certain conditions are met, such as an approach supported by the company’s board.
Bodycote said it continues to have confidence in its strategy and long-term prospects following the withdrawal of the bid. Shares in the company fell sharply in early trading after an initial rally sparked by takeover speculation in May.
The company, which was listed in 1972, provides specialist industrial services including heat treatment, metal joining and protective coatings for manufacturing applications.
The withdrawn approach reflects a broader pattern of private equity interest in UK-listed industrial companies, which are often viewed as undervalued relative to global peers and attractive targets due to their stable cash flows and mature market positions.
Recent deal activity in the sector includes the acquisition of aerospace components supplier Senior plc by Blackstone Inc. and industrial investor Tinicum, as well as a proposed transaction involving testing and inspection group Intertek Group plc, which has attracted interest from EQT AB.
Elsewhere in the UK mid-cap space, other potential deals remain in play, including a possible bid involving budget airline easyJet plc backed by Castlelake LP, while energy services group DCC plc recently rejected a £5bn takeover approach from a consortium of private capital investors.
