Bodycote, which works across industries including commercial jets, F1, automotive and space, has announced the expansion of its US operations with two acquisitions worth a total of £119m.
The Macclesfield-headquartered heat treatment and thermal processing services specialist has agreed to buy Lake City HT, based in Warsaw, Indiana, a medical market HIP and vacuum heat treatment business, and Stack Metallurgical Group in the Pacific Northwest of the US, a key provider of HIP, heat treatment and metal finishing services.
Bodycote has also announced plans to open a new HIP (hot isostatic pressing) plant at one of its existing sites in greater Los Angeles. It will become operational during 2024.
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Chief executive Stephen Harris said: "These investments are an important and exciting enabler of our strategy to further enhance and grow our specialist technologies businesses.
"In addition, they will also expand our footprint in aerospace and medical heat treatment on the West Coast and in Indiana in the US.
"The acquisitions will enhance group margins, are accretive to earnings per share and allow us to further capitalise on the structural growth opportunities in the space, Civil aerospace and medical markets.
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"The proposed new HIP plant in greater Los Angeles will allow Bodycote to take advantage of the burgeoning HIP market in space and civil aerospace in the region.
"It will require only modest investment as it utilises an existing Bodycote site and existing HIP vessels that are immediately available for installation.
"Optimal allocation of capital to drive shareholder value remains a top priority for the group and these investments reflect this."
Lazard acted as exclusive financial advisor to Bodycote on the acquisition of Lake City HT and Stack Metallurgical Group.