Bodycote, the world’s leading provider of heat treatment and specialist thermal processing services, has entered into an agreement to acquire Ellison Surface Technologies, creating one of the world’s 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 $50 million in 2018, and anticipated revenue for 2019 will be $58 million. Its 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 cooperation between Bodycote and Ellison will enhance their service offering to aerospace customers. Ellison employs approximately 400 people at six sites across the United States, Canada, and Mexico.
Stephen Harris, group chief executive of Bodycote plc, said, “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.”
Combining Ellison’s thermal spray and engineered coating surface technology services with Bodycote’s services and global infrastructure enhances the combined organization’s ability to deliver industry-leading 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.
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