Acquisition of K-Tech USA - 5th April 2001

Bodycote International plc, the international metal processing group, announces the acquisition of the whole of the issued share capital of K-Tech Inc., of Hot Springs, Arkansas. Bodycote already owns K-Tech’s sister company in the UK, Bodycote K-Tech Limited of Macclesfield which was acquired in 1999.

K-Tech provides unique ceramic coatings to the North American market, and primarily serves the oil, textiles and fluid handling (pumps) and plastics industries. Mr Jeff Carr and Mr Dave Hair, K-Tech’s former owners, will join Bodycote with responsibility for technical and market development.

Total consideration for the purchase was US$5.3 million (£3.69 million), which was paid in cash.

K-Tech’s sales for the year ended 31 December 2000 amounted to US$2.9 million (£2 million), and earnings before interest and tax, on an ongoing basis, were US$1.088 million (£757,000). Net assets acquired were US$1.2 million (£835,000).

The acquisition will broaden the range of Bodycote’s coatings services and expertise in North America.

Enquiries:

John Chesworth
Chief Executive
Bodycote International plc
Tel: 01625-505300

Martyn Wilton
Director
Bodycote International plc
Tel: 001-978-470-1620

John Hubbard
Director
Bodycote North America, Inc.
Tel: 001-214-904-2427