IMI buys US company in £120m deal
Birmingham-based IMI has acquired Zimmermann & Jansen (Z&J), headquartered in the US, for €135m (about £120m). Z&J will join the international engineering group’s severe service division.
Z&J specialises in severe service valves and related flow control products, and has manufacturing facilities in Germany, the US and South Africa.
About 40 per cent of the company’s sales are in emerging markets, including Russia, India and China. The senior management and approximately 430 employees will transfer with the business. In 2009, Z&J had sales of €125m and underlying operating profit of €15m.
Z&J will join IMI's severe service division, which provides custom engineered valve, actuation and control solutions for critical in-plant processes.
The acquisition will be funded out of IMI's existing resources and banking facilities, and the purchase is expected to be completed by 31 December 2010.
Martin Lamb, IMI's chief executive, said: "We are delighted to have acquired such a highly respected company as Zimmermann & Jansen. It has a strong reputation for its engineering expertise, has market-leading brands and technologies, a good aftermarket business, new products under development and strong customer relationships.
"Zimmermann & Jansen's activities in the refining and petrochemical and iron and steel markets open up a number of new niche opportunities for the combined business, as does their emerging market exposure, which together should help drive future growth."
