Engineering group buys American manufacturer

IMI's headquarters in Birmingham

Engineering group IMI has agreed to buy manufacturer PBM, in a deal which values the American company at £70m.

PBM, which makes industrial valves in Pennsylvania, will become part of IMI’s Critical Engineering division.

In 2018, PBM generated revenues of $35.6m (£29.4m) with adjusted EBITDA – a measure of operational profitability – of $6.8m (£5.6m).

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.”

Birmingham-headquartered IMI has been looking to expand its Critical Engineering’s offering into “attractive, adjacent markets”.

It expects the deal will deliver a financial return in excess of IMI’s cost of capital “by the end of year three, before revenue synergies”.

PBM is owned by the senior management team who will remain with the business post-acquisition, apart from the retiring chairman.

The deal is expected to complete by the end of October.

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