Macclesfield-based engineering group, Bodycote, has announced the completion of its £52 million acquisition of US based Lake City HT.
Indiana-based Lake City HT hot isostatic pressing (HIP) and vacuum heat treatment primarily for the aerospace and orthopaedic implant markets. The acquisition by Bodycote will greatly boost the reach of Macclesfield based engineering group within the medical sector.
Lake City HT is forecast to have achieved 2023 full year revenues of around $14 million (£11 million), with operating profit expected to be around $6 million (£5 million). The $66.5 million (£52 million) acquisition was on a cash and debt free basis, and will be accretive to Group profit margins and EPS in 2024.
Stephen Harris, Group Chief Executive of Bodycote plc, commented:
“Completion of the acquisition of Lake City HT is an exciting further step in our strategy to grow our Specialist Technologies businesses and footprint. This acquisition is an excellent fit, enhances our profitability and earnings per share in addition to allowing us to capitalise on the appealing structural growth opportunities in Medical and Aerospace markets.“
Alongside confirming the completion of its acquisition of Lake City HT, Bodycote also announced it would no longer proceed with its takeover of another American firm, Oregon-based Stack Metallurgical Group.