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Further to the announcement in October 2023, Bodycote has completed its acquisition of Lake City HT. The consideration paid on closing was $66.5 million on a cash and debt-free basis. After expected tax benefits worth approximately $7.5 million, the net economic price paid was $59.0 million, resulting in an acquisition multiple of less than 7.5x 2024 EBITDA.
Lake City HT, based in Warsaw, Indiana, is a hot isostatic pressing (HIP) and vacuum heat treatment business primarily supplying the orthopedic implant market. The transaction will significantly increase Bodycote’s customer reach in the medical market.
Lake City HT is forecast to have achieved 2023 full-year revenues of $14 million. The business achieved 30% revenue growth in 2023, and looking ahead is expected to continue to deliver good progress.
Stephen Harris, Group Chief Executive of Bodycote, commented, “Completion of the acquisition of Lake City HT is an exciting further step in our strategy to grow our Specialist Technologies businesses and footprint. This acquisition is an excellent fit, enhances our profitability and earnings per share in addition to allowing us to capitalise on the appealing structural growth opportunities in Medical and Aerospace markets.”
Source: Bodycote
