Bodycote to acquire Ellison Surface Technologies

January 9, 2020

Bodycote plc, headquartered in Macclesfield, Cheshire, UK, has agreed to acquire Ellison Surface Technologies, Inc., a leader in engineered surface coating solutions headquartered in Mason, Ohio, USA. The move is expected to create one of the world’s largest providers of thermal spray and engineered coating surface technology services to the aerospace industry.

According to Bodycote, Ellison’s business is highly complementary to Bodycote’s existing surface technology business, being that it is primarily focused on the aerospace market. It is expected that the company will be integrated into Bodycote’s surface technology and aerospace business, which has reportedly 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. The company explains that 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. Ellison currently employs approximately 400 people across six sites located across the USA, Canada, and Mexico.

Bodycote believes that by combining Ellison’s thermal spray and engineered coating surface technology services with its own services and global infrastructure, it will enhance the combined organisation’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.

Stephen Harris, Group Chief Executive of Bodycote plc, commented, “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.”

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