IMI makes £14 million Hydronics acquisition in US - 28 August 2000

IMI plc, the major international engineering group, today announces the acquisition of Flow Design Inc. for a cash consideration of US$21 million (£14million).

Based in Dallas, Texas, where it employs 125 people, Flow Design Inc. manufactures balancing valves for the heating, air-conditioning and ventilation market. It is the US market leader in automatic flow control devices. Sales in 1999 were US$15.4 million.

The acquisition is an excellent fit with IMI's Indoor Climate Control businesses, TA Hydronics and Heimeier. They will benefit from Flow Design Inc.'s market leading automatic flow control technology and the ability to develop the combined product range from within the world's largest marketplace. Likewise, the acquisition provides Flow Design Inc. the opportunity to market its products through IMI Hydronic Controls' existing international sales and distribution network.

Barry Pointon, an IMI Executive Director, said: "This is yet another step in the strategic development of IMI Hydronic Controls and the Indoor Climate Control businesses. We are currently the world leader in manual balancing technology, and the acquisition of Flow Design Inc. enables us to exploit the opportunities within the rapidly growing automatic balancing valves market. Flow Design Inc. also provide us with an important entree into the US market - the largest balancing valve market in the world."

TA Hydronics and Heimeier are part of IMI's Hydronic Controls group that reported turnover of £543 million and an operating profit of £69.5 million for 1999.

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Shandwick International
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Ben Padovan

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