IMI PLC Proposed acquisition of PBM for $85m (5528J)
20 August 2019 - 4:00PM
UK Regulatory
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: +44 (0)121 717 3712
Suzanne Bartch / Robert Teneo Tel: +44 (0)203 757 9242
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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END
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