Bodycote announced it has entered into a conditional agreement for the sale of its Testing Strategic Business Unit to Clayton, Dubilier and Rice, a private equity firm, for approximately $763 million. The sale, which is conditional on the approval of Bodycote’s shareholders and the receipt of regulatory approvals, is expected to be completed by the end of October 2008. Following the sale, Bodycote expects to accelerate the improvement in the financial performance of its Thermal Processing Business through increasing the amount of high added value and specialty processes, further expansion in emerging markets and by restructuring underperforming facilities, especially in North America.
Bodycote’s Testing Business provides technical and engineering services to the aerospace, energy, oil and gas, civil engineering, transportation, pharmaceutical, food and medical-device industries. The unit, which operates over 130 laboratories in more than 25 countries, provides services including quality control and product accreditation.