British heat treatment specialist Bodycote announced it has received a takeover proposal worth £1.52 billion ($2.04 billion) from Apollo Global Management, the company said in a statement.

The proposal from the private equity firm sent Bodycote shares climbing sharply in London trading as investors reacted to the potential deal. Bodycote confirmed that the two companies are currently engaged in discussions regarding the offer.

Bodycote specializes in heat treatment and thermal processing services for various industries including aerospace, automotive, and energy sectors. The company operates facilities across multiple countries, providing metallurgical services that enhance the properties of metal components.

Apollo Global Management, founded in 1990, is one of the world's largest alternative investment managers with approximately $650 billion in assets under management. The firm has been active in the industrial services sector and has a track record of acquiring and developing manufacturing and processing companies.

The talks represent the latest example of private equity interest in specialized industrial services companies, as firms seek businesses with stable cash flows and defensive market positions. No timeline for completing discussions or reaching a final agreement has been disclosed by either party.