LONDON (ShareCast) - Engineer Bodycote has made good on its pledge to sell its testing unit and said it will return some of the proceeds from the sale to shareholders.

Bodycote is to sell its testing unit for £417m in cash to Clayton, Dubilier and Rice.

Following the sale, Bodycote intends to return about £260m to shareholders, worth around 80p per share. The return of cash will be effected by means of a “B” share scheme accompanied by a share consolidation.

Around £18m of the proceeds from the sale will be paid into the group’s pension fund, with the remainder initially going towards the reduction of the debt position, though the cash has been earmarked for the subsequent development of the group’s Thermal Processing Business.

Bodycote plans to expand its Thermal Process Business by growing in emerging markets and by restructuring underperforming facilities, especially those in North America.

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