Bodycote acquires Stack Metallurgical Group and Lake City Heat Treating in $145M deal

Companies & MarketsNews
October 11, 2023

October 11, 2023

Bodycote has purchased Stack Metallurgical Group (above) and Lake City HT as part of its expansion plans in the US (Courtesy Lake City HT)
Bodycote has purchased Stack Metallurgical Group (above) and Lake City HT as part of its expansion plans in the US (Courtesy Lake City HT)

Bodycote plc, headquartered in Macclesfield, Cheshire, UK, has announced the acquisition of two US-based heat treatment and Hot Isostatic Pressing (HIP) focussed businesses for $145m (£119 million), along with plans for the opening of a new HIP facility in Southern California.

The companies purchased are Lake City Heat Treating, based in Warsaw, Indiana, and Stack Metallurgical Group based in Albany, Oregon. Lake City HT, is reported to be a leading medical market HIP and vacuum heat treatment business primarily supplying the orthopaedic implant market as well as civil aerospace customers. Stack Metallurgical Group is a key provider of HIP, heat treatment and metal finishing services primarily for the civil aerospace, defence and energy markets.

The two businesses are said to be highly complementary to Bodycote’s existing operations and will both expand its geographic footprint in North America and provide additional customer reach.

Lake City HT is a leading medical market HIP and vacuum heat treatment business primarily supplying the orthopaedic implant market, as well as civil aerospace customers (Courtesy Lake City HT)
Lake City HT is a leading medical market HIP and vacuum heat treatment business primarily supplying the orthopaedic implant market, as well as civil aerospace customers (Courtesy Lake City HT)

“These investments are an important and exciting enabler of our strategy to further enhance and grow our Specialist Technologies businesses,” stated Stephen Harris, Group Chief Executive of Bodycote plc. “In addition, they will also expand our footprint in aerospace and medical heat treatment on the West Coast and in Indiana in the US. The acquisitions will enhance group margins, are accretive to earnings per share and allow us to further capitalise on the structural growth opportunities in the space, civil aerospace and medical markets.”

THE WORLD OF POWDER METALLURGY TO YOUR INBOX
Subscribe to our weekly newsletter
Sign up

New HIP facility in greater Los Angeles

Additionally, Bodycote announced plans to open a new HIP plant utilising one of the group’s existing sites in greater Los Angeles, California. This capacity is expected to become operational during 2024 and will support the rapid growth in space and civil aviation markets in the Los Angeles area.

Harris added, “The proposed new HIP plant in greater Los Angeles will allow Bodycote to take advantage of the burgeoning HIP market in space and civil aerospace in the region. It will require only modest investment as it utilises an existing Bodycote site and existing HIP vessels that are immediately available for installation.”

“Optimal allocation of capital to drive shareholder value remains a top priority for the Group and these investments reflect this,” he concluded.

www.bodycote.com

www.stackmet.com

www.lakecityheattreating.com

Download PM Review magazine
Companies & MarketsNews
October 11, 2023

In the latest issue of PM Review…

Download PDF

Extensive Powder Metallurgy industry news coverage, and the following exclusive deep-dive articles and reports:

  • Phoenix Sintered Metals: A story of transformation, growth and community from America’s PM heartland
  • World PM2024 Yokohama: The stage is set for the PM industry to find a path to sustainable growth
  • The state of Europe’s hard magnets industry and the challenge of optimising the mass production of Nd2Fe14B permanent magnets

The latest news from the world of metal powders, delivered to your inbox

Don't miss any new issue of PM Review, and get the latest industry news. Sign up to our weekly newsletter.

Sign up

Join our community

Discover our magazine archive…

The free-to-access PM Review magazine archive offers unparalleled insight into the world of Powder Metallurgy from a commercial and technological perspective through:

  • Reports on visits to leading PM part manufacturers, metal powder manufacturers and industry suppliers
  • Articles on technology and application trends
  • Information on materials developments
  • Reviews of key technical presentations from the international conference circuit
  • International industry news

All past issues are available to download as free PDFs or view in your browser.

 

Browse the archive

 

Looking for PM production equipment, metal powders, R&D support and more?

Discover suppliers of these and more in our
advertisers’ index and buyer’s guide, available in the back of PM Review magazine.

  • Powders & materials
  • Powder process, classification & analysis
  • PM products
  • Atomisers & powder production technology
  • Compaction presses, tooling & ancillaries
  • Sintering equipment & ancillaries
  • Post-processing
  • Consulting & toll sintering
View online
Share via
Copy link