IMI completes £148m US acquisition
Birmingham-based engineering group IMI has completed the £148m acquisition of a US manufacturer.
The fluid control group strengthened its Precision Engineering division in December when it announced it had acquired Bimba, a market leading manufacturer of pneumatic, hydraulic and electric motion solutions.
The Chicago-based company has an extensive distributor network principally servicing the North American Industrial Automation market.
IMI said the deal was a “significant strategic step for the division” and one which will nearly double the size of IMI Precision Engineering’s US Industrial Automation business.
The plan now is to progressively move Bimba margins closer to those of IMI Precision Engineering.
The transaction is expected to be earnings enhancing in the first full year of ownership with return on capital exceeding IMI’s costs within the first three years.
The acquisition is being funded in cash from existing bank facilities. In addition, IMI has set aside $2.5m for staff retention.
Founded in 1957, Bimba manufactures an advanced range of actuators and associated products primarily for the Industrial Automation market. It has a blue-chip client base, extensive distributor relationships and a significant installed base.
The company operates from nine locations, seven in the US, one in Mexico and has a sales office in the Netherlands.
For the year ending December 2016 Bimba generated revenues of $109m with adjusted EBITDA of $13.3m. For 2017, it is on course to achieve revenues of c.$120m and adjusted EBITDA of c.$16m.
Mark Selway, chief executive of IMI said: “I would like to welcome Bimba and all its employees. By combining our businesses, we have created a significant opportunity to enhance IMI Precision Engineering’s current position in the US Industrial Automation market and grow the Bimba brand internationally.”
