Oct 16 Engineering company IMI Plc said
it would sell its beverage dispense and merchandising businesses
for 690 million pounds ($1.10 billion) to the Berkshire
Hathaway-owned Marmon Group, in a bid to focus on the
lucrative industrial end-markets of its core fluid power and
severe service units.
IMI's beverage business, which makes valves for drink
dispensers and accounts for about 14 percent of the company's
revenue, has been struggling as major customers have held back
capital expenditure and deferred orders.
IMI said in March it planned to sell most of its
merchandising business, which makes marketing displays and
accounts for just about 8 percent of its revenue.
"(The deal) leaves us in a very focussed flow-control
business - focussed entirely on very positive industrial
end-markets," Martin Lamb, IMI's outgoing chief executive, told
The company said it would return 620 million pounds from the
sale to its shareholders, and put the remaining 70 million
pounds into its pension fund. The sale is expected to be
completed in early 2014.
IMI, which also makes power-generation equipment, said its
full-year results would meet market expectations, with a
stronger second half offsetting its sluggish start to the year.
Shares in the company were up 2.4 percent at 1535 pence at
0730 GMT on the London Stock Exchange.
Third-quarter revenue rose 3 percent on an organic basis,
with the return to growth of IMI's fluid power business that
caters to the food and beverage, rail, and life science
industries. The unit contributes about a third to overall