Bodycote confirmed that it received a conditional takeover proposal from private equity giant Apollo Global Management valuing the UK-based thermal processing company at approximately £1.52 billion, or about $2.04 billion via Reuters. The proposal represents one of the latest major private equity approaches targeting British industrial companies as international investors continue seeking opportunities in the UK market.
According to the announcement, Apollo proposed an all-cash offer of 885 pence per share. The proposal also includes Bodycote shareholders retaining the company’s planned final dividend of 16.1 pence per share for the 2025 financial year, subject to shareholder approval. The proposed offer price represented a premium of roughly 27% compared to Bodycote’s closing share price prior to news of the discussions becoming public.
Following confirmation of the proposal, Bodycote shares surged significantly in London trading, climbing as much as 19% intraday as investors reacted positively to the potential transaction. The sharp increase reflected expectations that Apollo may ultimately proceed with a formal acquisition offer or that additional bidders could potentially emerge.
Bodycote said the proposal followed multiple previous approaches from Apollo. The company’s board confirmed it is currently reviewing the proposal with its advisers and engaging in discussions with the private equity firm. However, Bodycote emphasized that there is no certainty a formal offer will ultimately be made or that any transaction will proceed.
The company operates one of the world’s largest networks of thermal processing facilities, offering heat treatment, hot isostatic pressing, metal joining, and surface technology services to industrial customers. Bodycote’s technologies are used to improve the durability, strength, and performance of metal components utilized in sectors including aerospace, automotive, defense, energy, and medical equipment manufacturing.
Founded in 1923, Bodycote has grown into a major engineering services provider with operations spanning Europe, North America, and Asia. The company has been listed on the London Stock Exchange since 1972 and is widely regarded as a strategically important supplier to aerospace and industrial manufacturing supply chains.
The proposed acquisition comes during a period of heightened private equity activity involving UK-listed companies. International investors have increasingly targeted British firms due to what many analysts view as attractive valuations relative to comparable companies listed in the United States and other global markets. A combination of subdued equity market performance, currency dynamics, and macroeconomic uncertainty has led many overseas buyers to pursue acquisitions of established UK businesses with strong cash flow and industrial positioning.
Apollo has been especially active globally across industrial, infrastructure, and manufacturing-related investments. The firm manages hundreds of billions of dollars in assets and has completed numerous high-profile acquisitions across Europe and North America in recent years.
Industry observers noted that Bodycote’s recurring customer relationships, specialized industrial capabilities, and exposure to aerospace and defense markets could make it an appealing acquisition target for long-term infrastructure and private equity investors. Aerospace demand in particular has remained resilient as aircraft manufacturers ramp up production to meet growing travel demand and address multi-year order backlogs.
The announcement also highlights broader concerns within the UK investment community regarding the number of publicly traded British companies becoming acquisition targets or considering departures from public markets. Several executives, investors, and policymakers have warned that lower valuations and weaker liquidity in London markets have created an environment where overseas buyers can acquire strategically important businesses at comparatively attractive prices.
Under UK takeover rules, Apollo now has until June 19 to either announce a firm intention to make an offer for Bodycote or walk away from the process, unless an extension is granted by the UK Takeover Panel. Until then, discussions between the parties are expected to continue while investors closely monitor whether the proposal develops into a formal acquisition agreement.
