IMI PLC Proposed acquisition of PBM for $85m (5528J)

TIDMIMI

RNS Number : 5528J

IMI PLC

20 August 2019

20 August 2019

IMI announces the proposed acquisition of speciality valve manufacturer PBM for $85m

IMI plc ("IMI" or the "Group") announces the proposed acquisition of PBM Inc., ("PBM") for an enterprise value of $85m (GBP70.3m(1) ). PBM will become part of IMI's Critical Engineering division. In the year to December 2018, PBM generated revenues of $35.6m (GBP29.4m), adjusted EBITDA of $6.8m (GBP5.6m) and adjusted EBIT of $6.3m (GBP5.2m).

The proposed acquisition of PBM is fully aligned with IMI's strategy and represents an important opportunity to broaden IMI Critical Engineering's offering into attractive, adjacent markets. Closing is expected to take place within the next two months, subject to normal merger filings.

PBM overview

PBM is a manufacturer of high-quality industrial valves and flow control products. The company is based in Irwin, Pennsylvania, USA and end-markets include Pharmaceutical / Biotechnology, Consumer Products and Chemical. In its largest segment Pharma / Bio, PBM enjoys a leading market position in the US. The company is owned by the senior management team who will remain with the business post-acquisition, apart from the retiring Chairman.

Transaction highlights

 
 Ü      The acquisition extends IMI Critical Engineering's market 
              presence into new, growing segments - including Pharmaceutical 
              / Biotechnology - fully in-line with IMI's stated strategy. 
 Ü      PBM's reputation for responding quickly to customer needs 
              and developing solutions to industry problems are characteristics 
              that fit well with IMI's operating model. 
 Ü      PBM enjoys strong distributor and representative relationships 
              - particularly within its main US markets. There are clear 
              opportunities to broaden the market access of both PBM and 
              IMI through their respective routes to market. 
 Ü      The sharing of best practice between the businesses will 
              facilitate further operational improvement at PBM. 
 Ü      PBM will be both margin and earnings accretive to IMI. 
 Ü      The acquisition will deliver a financial return in excess 
              of IMI's cost of capital by the end of year three, before 
              revenue synergies, thereby maintaining the Group's record 
              of strict financial discipline. 
 

Commenting on the acquisition, Roy Twite, Chief Executive of IMI, said:

"Our strategy at IMI is all about delivering tremendous value by solving industry problems - and putting customers at the heart of our decisions and processes. We are delighted to know that PBM has values and ambitions very similar to our own and I am excited to welcome the company to IMI."

Jackie Hu, Divisional Managing Director of IMI Critical Engineering, commented:

"I am also thrilled to welcome PBM. The business has fantastic products, a market-leading position and an excellent reputation - particularly in markets that are new to IMI. We are very much looking forward to working with the team and further strengthen and extend our newly combined business."

Stuart J. Zarembo, Chairman of the Board and CEO of PBM, added:

"We have built an excellent business at PBM with a great team who are excited about the prospects to develop further as part of a like-minded organisation such as IMI."

Enquiries to:

 
John Dean                IMI    Tel: [phone] 
Suzanne Bartch / Robert  Teneo  Tel: [phone] 
 Morgan 
 

[1] Exchange rate of GBP1 = US$1.21 as at close of 15 August 2019 (Source: Bloomberg).

Notes to editors

IMI plc

IMI plc, the specialist engineering company, designs, manufactures and services highly engineered products that control the precise movement of fluids. Its innovative technologies, built around valves and actuators, enable vital processes to operate safely, cleanly, efficiently and cost effectively. The Group works with industrial customers across a range of high growth sectors, including energy, transportation and infrastructure, all of which are benefiting from the impact of long-term global trends including climate change, urbanisation, resource scarcity and an ageing population. IMI employs around 11,000 people, has manufacturing facilities in more than 20 countries and operates a global service network. The Company is listed on the London Stock Exchange. Further information is available at: www.imiplc.com.

PBM Inc.

PBM Inc. is a manufacturer of specialty ball valves for sanitary and industrial end-market applications. The Head Office and main manufacturing facility is in Irwin, Pennsylvania, USA and has 104 employees. More information is available at: www.pbmvalve.com.

IMI plc is registered in England No. 714275. Its legal entity identifier ('LEI') number is 2138002W9Q21PF

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August 20, 2019 02:00 ET (06:00 GMT)