Bodycote Shares Jump as Veritas Agrees £1.64bn Takeover

Shares in Bodycote (LON: BOY) surged on Tuesday after the specialist thermal processing group agreed to a recommended cash takeover by Vulcan Alpha Bidco Limited, a vehicle owned by US private investment firm Veritas Capital Fund Management.

The stock rose around 4% to roughly 949p, extending recent gains as the deal crystallises months of takeover speculation.

Under the terms, Bodycote shareholders will receive 940p per share in total value — comprising 932.8p in cash plus the previously declared 7.2p FY26 interim dividend, which holders keep in full.

The cash consideration values Bodycote’s equity at approximately £1.64bn, with an enterprise value of about £1.84bn. The offer represents a 44% premium to Bodycote’s closing price the day before Veritas’ initial approach, and a 24.3% premium to the price immediately before the formal offer period began.

The world’s largest heat treatment and thermal processing provider had been in play since May, when an unsolicited approach from Apollo prompted separate rival bids from Veritas and private equity peer CVC. Veritas ultimately prevailed with its improved 940p offer, topping CVC’s 915p proposal.

Bodycote’s board, advised by Barclays, Goldman Sachs and Gleacher Shacklock, unanimously recommended the deal, with chair Daniel Dayan calling it recognition of “excellent value in cash” following progress on the group’s Optimise, Perform and Grow strategic programme. Veritas partner James Dimitri said the firm would draw on its aerospace and defence sector experience to support Bodycote’s next growth phase.

The deal, structured as a scheme of arrangement, requires shareholder and court approval and is expected to complete in the first quarter of 2027, pending regulatory clearances.