RNS Number : 5459X
16 February 2012
16 February 2012
Severe Service acquisition
IMI plc ("IMI"), the international engineering group, has acquired Remosa SpA and related companies (collectively "Remosa"), a leading engineering business specialising in valves and related flow control products for severe applications, for an enterprise value of approximately €100m.
Founded in 1955 by Giulio Mambrini, Remosa is a privately owned severe service valve business based in Sardinia, Italy. Remosa makes specialist valves used in critical applications in the downstream petrochemical sector including fluid catalytic cracking slide valves, two port diverter valves, expander butterfly valves, inlet/outlet isolation valves and ancillary equipment with its own range of linear and rotary valve actuators and hydraulic pressure control units. Remosa also has an established valve servicing business.
The main Remosa manufacturing facility is located in Sardinia. The senior management and all of its 360 employees will be transferring with the business. In calendar year 2011, Remosa's unaudited sales were €48m and underlying EBITDA was €8m.
Remosa will join IMI's Severe Service division, which is a leading global provider of custom engineered valve, actuation, and control solutions for critical in-plant processes, focusing on the Power Generation, Oil and Gas, Petrochemical and Iron and Steel markets. The acquisition of Remosa is highly complementary with Zimmermann & Jansen, which IMI acquired at the end of 2010, and will strengthen the Group's presence in the downstream petrochemical market. The use of IMI's global sales and aftermarket infrastructure is expected to improve Remosa's geographic penetration, notably in North America and develop its aftermarket offering. Remosa already has a strong presence in emerging markets, including South America and Asia, with over 50% of sales coming from those markets.
Remosa was acquired from the founding Mambrini family for a cash consideration of €82.4m and the debt assumed as part of the transaction of approximately €17.6m. The consideration was funded out of IMI's existing resources and banking facilities.
Martin Lamb, IMI's Chief Executive, commented:
"We are delighted to have acquired Remosa and welcome the Mambrini family and all of the company's employees into the IMI group. Remosa has a strong reputation for its engineering expertise, has market-leading brands and technologies, strong customer relationships, a growing aftermarket opportunity and importantly a good exposure to key emerging markets. The acquisition significantly strengthens our position in the downstream petrochemical market following the recent acquisition of Zimmermann & Jansen. There are significant opportunities to develop this combined business globally and help to drive future growth within our Severe Service division."
Additional information on Remosa is set out in a brochure available on the IMI corporate website www.imiplc.com.
IMI will release its preliminary results for the year ended 31 December 2011 on 2 March 2012.
Will Shaw Tel: 0121 717 3712
Rollo Head / Charlie Chichester Tel: 020 7251 3801
Notes to editors:
IMI is a global engineering group focused on the precise control and movement of fluids in critical applications. It works with leading international companies in over 50 countries to deliver innovative engineering solutions, built around valves and actuators, to address global trends such as clean energy, energy efficiency, healthcare and increasing automation. Its shares are listed on the London Stock Exchange and it is a member of the FTSE100. Further information is available at www.imiplc.com.
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