Bodycote suspends GBP80 million buyback after accepting Veritas offer

Bodycote PLC on Wednesday afternoon announced the suspension of its share buyback programme, in light of its agreeing to a takeover offer from Veritas Capital Fund Management LLC.

The Macclesfield, England-based thermal processing company launched the £80 million buyback programme in March, alongside announcing its 2025 results. It expected to complete this by the end of 2026, through two equal tranches.

As of Wednesday, however, the programme is suspended. Bodycote said Barclays Bank PLC has repurchased 2.6 million shares on its behalf for £17.5 million.

The suspension is in light of Bodycote on Tuesday accepting a proposal from New York-based private equity firm Veritas, which values each share at 940 pence. This includes 932.8p in cash and the already declared interim dividend of 7.2p per share.

Bodycote shares closed 0.2% lower at 953.50 pence on Wednesday in London.

The approach values Bodycote at £1.65 billion on a fully diluted basis, and an enterprise value of £1.85 billion.

Bodycote said it believed the Veritas offer represented an "attractive opportunity" for shareholders to realise an "immediate and certain cash value" for their investment, relative to the macroeconomic and end-market risks inherent in executing its strategy over the medium- to long-term.

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