Bodycote Plc received takeover bids worth around £1.6 billion ($2.2 billion) each from CVC Advisers Ltd. and Veritas Capital, pitting rival private equity firms against one another in a contest for the UK-based thermal processing services provider.

The dual offers value the company at a significant premium to its recent market capitalization, reflecting strong private equity interest in industrial services businesses with recurring revenue streams. Bodycote operates across aerospace, automotive, and energy sectors, providing heat treatment and specialist thermal processing services through a global network of facilities.

Both suitors are established infrastructure and industrial investors. CVC manages approximately $180 billion in assets across private equity, credit, and secondaries strategies, while Veritas focuses on technology and government services investments with over $50 billion under management. The competitive dynamic could drive further price escalation as each firm conducts due diligence.

Bodycote's board will evaluate the proposals alongside its standalone strategy, which has emphasized margin expansion and cash generation. Shareholders stand to benefit from the auction process, though regulatory scrutiny may arise given the company's defense-related work.