Bodycote International has indicated it plans to sell its testing unit and expects to formally contact potential purchasers. A transaction would leave Bodycote focused on its thermal processing unit, which serves the aerospace and energy industries. Bodycote’s Board of Directors believes there are significant opportunities for the thermal processing unit to replace the profit stream of the testing unit. The company has closed testing laboratories in the United States, United Kingdom and Canada after costs hurt profitability.
Bodycote’s testing unit, which provides laboratory and consultancy services to industries including aerospace, food and fossil fuels, was built up through organic development and acquisitions since the early 1980s. According to Bodycote, which rejected six takeover offers from Sulzer AG last year, the company plans to complete a transaction for the testing unit by the end of October.
Bodycote to Sell Testing Unit
May 1, 2008