06 March 2006
6 March 2006
IMI announces £113m acquisition in Fluid Controls
IMI plc, the major international engineering group, has agreed to acquire the
Truflo Group, a leading specialist in valves and related flow control products,
for an enterprise value of £113m.
The Truflo Group serves a number of niche market sectors including oil and gas,
nuclear, petrochemical and marine applications. Truflo has manufacturing plants
and other facilities in the UK, Italy, France, Belgium, Germany and Canada.
Approximately 500 employees, including operational management, will be
transferring with the business.
The majority of Truflo will become part of IMI's Severe Service business, which
is a leading global provider of engineered valve solutions for critical
processing plant. The balance, which includes specialist pressure regulator and
control systems (approximately 15% by turnover), will become part of IMI's Fluid
Power business, which has complementary operations.
In 2005 Truflo Group had sales of £66m and underlying operating profit of
£12.8m. The value of operating assets to be acquired is approximately £16m.
IMI has agreed to acquire Truflo from the Alchemy Investment Plan and others for
a cash consideration of £120m payable on completion, with Truflo having net cash
of approximately £7m at 31 January 2006, representing an enterprise value of
£113m. The consideration will be funded out of IMI's existing resources and
banking facilities. Completion is subject to regulatory clearances which are
expected to be received within two months.
Martin Lamb, IMI's Chief Executive, commented:
'We have followed the fortunes of Truflo for some considerable time and are
delighted to have made this acquisition. Truflo's activities in oil & gas and
power sectors are complementary to our own, and their involvement in the
petrochemical and marine sectors opens up a number of new opportunities for the
combined business. They have an extensive installed base, a number of
market-leading brands, good technology, and some great customer relationships.
The sharing of market intelligence, manufacturing capacity and a combined
aftermarket service infrastructure should deliver numerous opportunities for
- Ends -
Graham Truscott, Communications Director Tel: 0121 717 3712
Weber Shandwick Square Mile
Nick Oborne / Stephanie Badjonat Tel: 020 7067 0700
Note to editors:
IMI plc is an 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 (Severe
Service, Fluid Power, Indoor Climate) and Retail Dispense (Beverage 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' through bespoke
solutions rather than a high manufacturing or material content.
IMI is quoted on the London Stock Exchange and is capitalised at approximately
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