IMI has agreed to acquire Bimba, which according to the company is represents a significant strategic step for IMI Precision Engineering.
The acquisition of Bimba will nearly double the size of IMI Precision Engineering’s US Industrial Automation business.
According to IMI, it plans to progressively move Bimba margins closer to those of IMI Precision Engineering. The transaction will be earnings enhancing in the first full year of ownership with return on capital exceeding IMI’s cost of capital within the first three years.
The acquisition will provide the platform to accelerate IMI Precision Engineering’s North American growth objectives.
The consideration for the transaction will be $198 million payable in cash on completion from existing bank facilities. In addition, IMI has set aside $2.5 million for the purpose of staff retention. Completion is conditional on merger clearance and the approval by Bimba’s employee stock ownership plan (“ESOP”), both of which are expected to take place in early 2018.
According to IMI, the integration team’s first priority will be to present a unified approach to the market while building a platform to accelerate the commercial and distribution opportunities which the combination creates.
"Bimba is a terrific company which is perfectly aligned with IMI’s strategic objectives and we are delighted to welcome all of its employees to the Group. Bimba will significantly enhance IMI Precision Engineering’s current position in the US Industrial Automation market," said Mark Selway, chief executive of IMI. "The enlarged product portfolio will increase our competitiveness and Bimba’s extensive distributor network will materially improve IMI Precision Engineering’s US market access. We are really excited about the future and look forward to working with the Bimba team."
"This is an exciting and transformational next step for Bimba as it becomes an important part of an internationally recognised global engineering business," said Patrick Ormsby, chief executive of Bimba. "We now have the opportunity to grow our business beyond the US, offer our customers enhanced products and services and compete more effectively. The management team will remain with the business and we are all very excited by the significant opportunities that this deal will create."
