IMI's repositioning continues with £55 million disposal - 25 June 2001
IMI plc, the major international engineering group, has announced the sale of a number of its smaller businesses in Energy Controls to Tyco Flow Control (UK) Ltd for £55 million in cash. The businesses sold comprise the Safety Systems Group (Bailey Birkett, Amal and Marston Bursting Discs in the UK), the ball valve business (Mecafrance in France and MCF in the US) and Cash Valve in the US. In the year ended 31 December 2000 these businesses had a combined operating profit of £5.5 million on sales of £48 million. The value of transferred assets at completion was £25 million. The proceeds of sale were paid in full on completion and will be reinvested in IMI's businesses.
IMI recently announced its intention to focus on a fewer number of higher growth businesses and this disposal is a further step in that process. Energy Controls is now predominantly a Severe Service control valve business based upon CCI, the global market leader in severe service valves supplied to the growing power, oil & gas markets. Including BTG, acquired in February, IMI's revenues in the Severe Service sector are now in excess of £115 million per annum.
IMI's Chief Executive, Martin Lamb, commented: "The sale of these businesses makes a great deal of sense for both parties, complementing Tyco Flow Control's broader industrial offering, whilst sharpening IMI's focus on the niche Severe Service sector. During the first half of this year we have acquired BTG, in Severe Service, and Display Technologies, in our Point of Purchase (PoP) display business at a combined cost of £42 million and have now generated £55 million in sale proceeds. The combination of these three transactions is expected to be earnings enhancing in the first full year."
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Further information on Severe Service can be obtained from the CCI website www.ccivalve.com
Enquiries:
IMI plc
Tel: 0121 332 2343
Martin Lamb, Chief Executive
Trevor Slack, Finance Director
Issued by:
Weber Shandwick Worldwide
Tel: 020 7329 0096
Ben Padovan
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