IMI buys radiator valve firm for pounds 97m
Friday 04 April 1997
The deal is the biggest since IMI paid pounds 130m for Heimeier, Germany's biggest manufacturer of thermostatic radiator valves, at the beginning of last year. It takes the total spend on acquisitions over the last 15 months to pounds 360m.
IMI said adding T&A to Heimeier and its other building products operations would give it control over 20 per cent of the world market for heating valves and fittings, and an even bigger share in Scandinavia.
Gary Allen, the chief executive, said: "IMI has stringent acquisition criteria and this is another acquisition which fits superbly with those criteria."
The Swedish company, which is being acquired for cash from Incentive Group, part of the wealthy Wallenberg family empire, was a rival bidder for Heimeier and the deal would not have made sense had IMI not bought the German company, Mr Allen said.
The company in effect created the market for so-called "balancing valves", which regulate the temperature in heating and cooling systems, after developing and introducing the product in 1963.
Last year it made pre-tax profits of pounds 9.4m on turnover of pounds 67m, giving an exit price/earnings ratio of 14, IMI said.
The group's shares added 10p to 387p yesterday as analysts estimated it would add pounds 3m to profits after financing costs in a full year. Michael Blogg of Charterhouse Tilney described it as "quite neat. Financially it stacks up."
IMI's pro forma year-end gearing would rise 35 points to 46 per cent after the latest deal, but with interest cover "well into the teens" it did not rule out further acquisitions.
- 1 Renee Zellweger on plastic surgery reports: 'I'm living a fulfilling life and I'm thrilled that perhaps it shows'
- 2 Disney announces new female-led film Moana
- 3 Banksy not arrested: Internet duped by fake report claiming artist's identity revealed
- 4 Australian café owner sparks debate after saying 'No' to having unruly children on premises
- 5 Video: Boxer Vido Loncar brutally assaults referee following defeat
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
Support for EU membership 'at highest level since 1991 with most Brits wanting to stay in'
iJobs Money & Business
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£20000 - £25000 per annum + OTE £Competitive: SThree: SThree Group and have be...