LITTLETON, Colo. — IMI announced that it has agreed to acquire Bimba, a manufacturer of pneumatic, hydraulic and electric motion solutions with an extensive distributor network principally servicing the North American Industrial Automation market. Bimba will become an integral part of IMI Precision Engineering and the acquisition represents a significant strategic step for the division. The consideration for the transaction will be $198 million (£148 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. The acquisition is expected to be earnings enhancing in the first full year of ownership and return on capital is expected to exceed IMI’s cost of capital within three years. Founded in 1957, Bimba manufactures an advanced range of actuators and associated products primarily for the Industrial Automation market. It has a blue-chip client base, extensive distributor relationships and a significant installed base. The company’s head office is located in Chicago, Illinois, and it operates from nine locations—seven in the U.S., one in Mexico and a sales office in the Netherlands. The vast majority of its revenues are in the U.S. and it has around 500 permanent employees. Patrick Ormsby, the long-term president of Bimba, and all of his executive and management will remain with Bimba after completion. The acquisition adds breadth and depth to both companies’ existing product offerings by combining Bimba’s complementary cylinder products with IMI Precision Engineering’s valve and air preparation portfolio, with minimal overlap. 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.
Thu, 12/14/2017 - 00:00