Bodycote has gone ahead with plans to buy France’s biggest subcontract heat treatment company, HIT, valuing the company at £60.7m.
Adding HIT’s 44 sites expands Bodycote’s operations to more than 100 locations in 18 countries.
It will also give Bodycote access to a fast-developing market for contract heat-treatment in France, where HIT had half of the market.
The deal will be financed by a heavily discounted one-for-four rights issue which should raise £99.3m, subject to shareholder approval.
The balance of the proceeds will fund further acquisitions in the UK, mainland Europe and the US.
`The acquisition will reinforce our position as the largest independent metal technology business in Europe,’ said Bodycote chairman John Chesworth.