Primetals sells steel rod mill to HBIS Shijiazhuang

Ellison’s business generated revenues of $ 59 million (£ 48 million) for 2019, with associated pro-forma EBITDA of $ 12 million (£ 10 million). This represented revenue growth on 2018 of 17 %, while pro-forma EBITDA increased 48 %, reflecting the fact that Ellison has been successfully gaining share. This also positions the business for further revenue and profit growth in future years. Bodycote will receive tax benefits worth at least $ 30 million (£ 24 million) in the years to come. Ellison employs almost 400 people across six sites located across the United States, Canada and Mexico.

Bodycote continues to execute its strategy to invest in specialist technologies and secular growth businesses. Ellison’s business is an excellent strategic fit with Bodycote’s existing surface technology business, which itself has seen strong structural growth in recent years. Together, the enlarged business can offer additional technologies and added resources to consolidate its leadership in surface coating solutions and specialist processes, including thermal spray coating, liquid coating, thermal processing, and diffusion coating. Ellison’s operations will be fully integrated into Bodycote’s business model both from an operational and commercial perspective, and will operate going forward under the Bodycote brand.

Stephen Harris, Group Chief Executive of Bodycote plc, commented: “This acquisition continues our strategy to build our specialist technolgies portfolio and enhance our exposure to the civil aerospace market, where we see structural growth over the long term, nothwithstanding the current hiatus in the industry. Ellison’s business is one that we have respected for a long time and is a perfect strategic fit for Bodycote’s businesses.”

Source: Heat processing