07 August 2002
7 August 2002
IMI ANNOUNCES $66m (£ 42.5m) ACQUISITION IN MERCHANDISING SYSTEMS
IMI plc, the major international engineering group, today took a further step in
the execution of its strategy with the expansion of its Merchandising Systems
business. The move follows the recent announcement of the disposal of IMI's
Copper Fittings business.
IMI plc has acquired DCI Marketing (DCI) for a cash consideration of $66m
(£42.5m). DCI is a Point-of-Purchase design, product development and marketing
organisation headquartered in Milwaukee, with regional offices in five other US
cities. In the year to 2001, DCI had sales of $90m and operating profit of $7m.
The value of the net assets acquired is around $33m. DCI has 300 employees
and all the key current management will remain with the business.
Martin Lamb, IMI's Chief Executive, commented, 'DCI Marketing has a history of
success serving the automotive, technology and packaged food industries, with
clients such as General Motors, Microsoft, Motorola and Frito Lay. Focusing on
multi-material design and marketing expertise, it complements our considerable
presence in Point-of-Purchase markets. The combination of these businesses will
help our retail and brand-marketing customers to increase merchandising
efficiencies and grow sales.'
IMI's Merchandising Systems business is a market leader in the USA and consists
of Cannon Merchandising - which specialises in heavier-duty metal and
wire-formed solutions for the dairy, newspaper, confectionery and clothing
industries; Display Technologies, acquired in 2001, focusing on highly creative
plastics designs for a wide range of consumer product customers in the beverage,
food and cosmetics industries; and now, DCI Marketing, with its strengths in
delivering customer value in automotive, technology and packaged goods markets.
With this acquisition pro-forma annual sales of IMI's Merchandising Systems
business will be around $250m.
Information about DCI Marketing can be found on the website:
www.dcimarketing.com. Information about IMI plc can be found on the website:
Graham Truscott Tel: 0121 332 2330
Ben Padovan Tel: 020 7950 2800
Weber Shandwick Square Mile
Note to editors:
IMI's Merchandising Systems business specialises in innovative and creative
Point-of -Purchase displays that enable its international blue-chip client base
to boost sales and build brand strength for their products.
IMI plc is a dynamic international engineering business specialising in
innovative solutions and services for a wide range of industrial and retail
customers. IMI's announced strategy is to exit, over time, its more traditional
commodity-based businesses and to invest in the higher growth areas of Fluid
Controls and Retail Dispense (including Merchandising Systems).
IMI's operations in Fluid controls and Retail Dispense share the following core
characteristics: strong market positions in growing markets; the ability to be
clearly differentiated from competitors through technological innovation or
after-sales service; and the provision of 'added value' solutions through
bespoke solutions rather than a high manufacturing or material content.
IMI is quoted on the London Stock Exchange and is capitalised at approximately
This information is provided by RNS
The company news service from the London Stock Exchange