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New York buyout shop Clayton, Dubilier & Rice Inc. said Thursday it would pay an initial £417 million ($768 million) cash for the testing division of Bodycote plc.
Bodycote, of Macclesfield, England, is selling the business to concentrate on its other main unit, thermal processing, which makes treatments used in industries including aerospace, oil and gas, power generation and the automotive sector. It plans to return £260 million to shareholders following the sale, or 80 pence per share.
Bodycote shares rose 17.25 pence, or 8.2%, to 227.25 pence, giving a £731.1 million value to the whole group. The testing business serves corporate clients in industries ranging from aerospace to food through over 130 laboratories in more than 25 countries. It had 2007 sales of £176.1 million and operating profit of £15.7 million. CD&R is investing from its seventh fund. As well as £417;million in cash, the buyer will provide Bodycote with a loan note entitling Bodycote to the proceeds of the sale of 65 acres of land in Mississauga, Ontario. -- Laura Board For the full story, including advisers, see TheDeal.com Categories![]()
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