02 October 2002
Embargoed until 9.00am
2 October 2002
IMI'S REPOSITIONING CONTINUES WITH DISPOSAL OF
IMI plc, the major international engineering group, today announces the sale of
its Copper Tube business. The business is being acquired by KM Europa Metal AG
(KME) which is based in Osnabruck, Germany. KME's controlling shareholder is GIM
/SMI, which is quoted on the Italian Stock Exchange. The total consideration is
£12.8m payable in cash on completion, which is expected to take place within the
next three months. The purchase will require regulatory clearance in Germany.
For the year ended 31 December 2001 the Copper Tube business, whose main
operating unit is located in Kirkby, England, had sales of £93m and operating
profit (before rationalisation costs and goodwill amortisation) of £1.7m. The
value of the assets to be transferred is approximately £24m. No financial
indebtedness will be transferred.
This disposal follows the disposal in August of the Copper Fittings business to
Aalberts Industries NV for £65m. It is a further step in the execution of IMI's
strategy to focus on areas that offer the strongest long-term prospects for
growth - namely Fluid Controls and Retail Dispense. The proceeds will be
reinvested in growing IMI's business in these areas.
IMI's Chief Executive, Martin Lamb, commented, 'As was the case with Copper
Fittings, I am very pleased that, in KME, Copper Tube has been acquired by a
well-established European industry leader.
The disposal of our remaining copper business represents a significant milestone
in the repositioning of IMI. On completion of this deal we will have exited from
copper tube and fittings for combined proceeds of around £78m. '
For further information contact:
Graham Truscott Tel: 0121 332 2330
Ben Padovan Tel: 020 7950 2800
Weber Shandwick Square Mile
Information about IMI plc can be found on the website: www.imiplc.com
Information about KM Europa Metal AG can be found on: www.kme.com
Note to editors:
IMI plc is a dynamic international engineering business specialising in
innovative solutions and services for a wide range of industrial and retail
customers. Its future growth is being built on the two business areas of Fluid
Controls and Retail Dispense.
IMI's operations in these two business areas share the following core
characteristics: strong market positions in growing markets; the ability to be
clearly differentiated from their 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
KM Europa Metal AG is one of the largest manufacturers of copper and copper
alloy products with production facilities in Germany, France, Italy, Spain and
China. KME was formed through the merger of three long-standing companies in
the European copper Industry: Europa Metalli S.p.A. (Italy), Trefimetaux S.A.
(France) and KM-kabelmetal AG (Germany). KME's controlling shareholder is GIM/
SMI. KM Europa Metal AG, run by a European management team from Germany, has
four divisions: Brass Rods, Tube Systems, Special Products and Rolled Products,
together with a full-service world-wide sales network.
- Ends -
This information is provided by RNS
The company news service from the London Stock Exchange