IMI plc ("IMI" or the "Group") announces the proposed acquisition of PBM Inc., ("PBM") PBM will become part of IMI's Critical Engineering division. The proposed acquisition of PBM is fully aligned with IMI's strategy and represents an important opportunity to broaden IMI Critical Engineering's offering into attractive, adjacent markets. Closing is expected to take place within the next two months, subject to normal merger filings.
PBM is a manufacturer of high-quality industrial valves and flow control products. The company is based in Irwin, Pennsylvania, USA and end-markets include Pharmaceutical / Biotechnology, Consumer Products and Chemical. In its largest segment Pharma / Biotechnology, PBM enjoys a leading market position in the US. The company is owned by the senior management team who will remain with the business post-acquisition, apart from the retiring Chairman.
- The acquisition extends IMI Critical Engineering's market presence into new, growing segments - including Pharmaceutical / Biotechnology - fully in-line with IMI's stated strategy.
- PBM's reputation for responding quickly to customer needs and developing solutions to industry problems are characteristics that fit well with IMI's operating model.
- PBM enjoys strong distributor and representative relationships - particularly within its main US markets. There are clear opportunities to broaden the market access of both PBM and IMI through their respective routes to market.
- The sharing of best practice between the businesses will facilitate further operational improvement at PBM.
- PBM will be both margin and earnings accretive to IMI.
- The acquisition will deliver a financial return in excess of IMI's cost of capital by the end of year three, before revenue synergies, thereby maintaining the Group's record of strict financial discipline.