CVC Advisers has ended its interest in acquiring Bodycote, removing the prospect of its competing bid and leaving Veritas Capital’s recommended cash acquisition as the live transaction for the UK-listed thermal-processing group.
CVC confirmed on 28 September that it does not intend to make an offer for Bodycote. The statement was made under Rule 2.8 of the Takeover Code, which places restrictions on CVC returning with another proposal unless specified circumstances arise.
The withdrawal follows several months of takeover activity around the Macclesfield-headquartered company, which provides heat treatment and specialist metallurgical technologies to customers in aerospace, defence, automotive, energy, and industrial markets.
Bodycote agreed a recommended offer from Veritas Capital on 1 September. The transaction gives shareholders a total value of 940p per share, comprising 932.8p in cash and a previously declared 7.2p interim dividend.
The offer values Bodycote’s equity at around £1.65bn and gives the company an enterprise value of approximately £1.85bn including debt.
CVC had previously indicated a proposal worth up to 915p per share and continued considering its position after Bodycote backed the higher Veritas offer.
Its latest announcement said: “CVC confirms that it does not intend to make an offer to acquire Bodycote.”
CVC’s withdrawal simplifies the transaction but does not complete it. Bodycote has published the formal scheme documentation, and shareholders must consider the Veritas proposal through the required court and general meetings before the acquisition can proceed.
The process has drawn attention because several private-equity investors have examined Bodycote during 2026. Apollo previously pursued the company before withdrawing, followed by competing interest from Veritas and CVC.
Bodycote’s appeal lies partly in the characteristics of thermal processing. Heat treatment and specialist metallurgical services are embedded in manufacturing supply chains because components used in aircraft, vehicles, energy systems, and industrial equipment often need tightly controlled processing before entering service.
The operations are capital intensive and technically specialised. Customer qualification can also take time, which can create durable commercial relationships once a supplier is approved for critical components.
Aerospace and defence exposure has become particularly relevant as aircraft production rises and governments increase defence expenditure. Those markets can offer long-duration demand, although the business remains exposed to wider industrial production cycles.
Private-equity buyers have continued to examine UK-listed industrial and service businesses where public-market valuations compare favourably with equivalent assets elsewhere. A cash acquisition allows shareholders to realise an immediate premium while transferring future operating risks and capital requirements to the buyer.
For existing shareholders, the decision is therefore between the agreed cash value and continued exposure to Bodycote’s independent strategy. The board has recommended the Veritas proposal, subject to the formal scheme process.
For Veritas, completion would add a substantial international industrial-services platform to a portfolio managed by a US private-equity group with experience in technology and government-related markets.
The removal of CVC reduces the likelihood of the existing process producing another bidding round, although the Rule 2.8 statement contains the standard circumstances under which restrictions could cease to apply, including the emergence of another firm offer.
Absent such a development, the focus now moves away from competitive bidding and towards shareholder approval, regulatory conditions, and completion mechanics.
Bodycote remains listed until those requirements are satisfied. Its shareholders are scheduled to vote on the scheme in October, making the next major milestones procedural rather than another round of negotiations between the two private-equity bidders.
CVC’s decision has therefore narrowed the takeover process to a single agreed proposal. Veritas’s 940p-per-share offer remains the defined route through which Bodycote would leave the public market if the scheme secures the necessary approvals.
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