British thermal processing specialist Bodycote (BOY.L) experienced a significant boost to its share price on Friday, climbing by as much as 19%, after disclosing a conditional all-cash takeover proposal from US-based alternative asset manager Apollo (APO.N). The offer values the London-listed company at approximately £1.52 billion, or US$2.04 billion. This announcement has generated considerable interest in the market, reflecting the ongoing appetite for UK-listed firms and sending Bodycote’s shares to 832 pence.
Apollo’s proposal stands at 885 pence per share in cash, representing a substantial premium of nearly 27% compared to Bodycote’s closing price on Thursday. Under the terms, Bodycote shareholders would also be eligible to receive a proposed final dividend of 16.1 pence per share for the 2025 financial year, pending shareholder approval. Bodycote provides heat treatment and other metal processing services, crucial for improving the performance and durability of metal components used across key industrial sectors, including aerospace, defence, automotive, and energy.
This conditional bid positions Bodycote as the latest UK-listed entity to attract considerable attention from overseas buyers, joining a growing trend that has recently included companies such as Intertek (ITRK.L) and Tate & Lyle (TATE.L). Bodycote confirmed that the proposal follows several earlier approaches from Apollo, and while talks are currently underway, the company has cautioned there is no certainty a formal offer will ultimately be made or on what final terms. Apollo has until June 19 to either announce a firm intention to make an offer or withdraw its interest.
