Bodycote, provider of heat treatment and specialist thermal processing services, has entered into an agreement to acquire Ellison Surface Technologies Inc (‘Ellison’), creating one of the largest providers of thermal spray and engineered coating surface technology services to the aerospace industry.
Ellison’s business, based in North America, is highly complementary to Bodycote’s existing surface technology business. It is primarily focused on the aerospace market. The company will be integrated into Bodycote’s surface technology and aerospace business, which itself has seen strong structural growth in recent years.
Ellison’s business generated revenues of $50m (£38m) in 2018, and anticipated revenue for 2019 will be $58m (£44m). The company’s growth reflects the fact that Ellison has been successfully gaining share in the civil aviation business, which will also provide a solid foundation for further growth in future years. The synergies between Bodycote and Ellison will enhance their service offering to aerospace customers. Ellison employs approximately 400 people across six sites located across the United States, Canada, and Mexico.
“Ellison’s business is one that we have long respected and is a perfect strategic fit for Bodycote’s aerospace and Specialist Technologies’ businesses. Ellison has been successful in winning new business in recent years and it will be very complementary to Bodycote’s existing surface technology business,” commented Stephen Harris, group chief executive of Bodycote Plc.
Combining Ellison’s thermal spray and engineered coating surface technology services with Bodycote’s services and global infrastructure enhances the combined organisation’s ability to deliver industry solutions that address aerospace customers’ heat treatment and specialist thermal processing requirements.
Completion of the transaction is contingent on various regulatory filings’ processes; it is anticipated that the transaction will complete during the first quarter of 2020.
With more than 180 accredited facilities in 23 countries, Bodycote provides heat treating and specialist thermal processing services worldwide. Through classical heat treatment and specialist technologies including Hot Isostatic Pressing (HIP), Bodycote improves the properties of metals and alloys, extending the life of vital components for a wide range of industries, including aerospace, defence, automotive, power generation, oil and gas, construction, medical and transportation.
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