IMI snaps up Brazilian valve firm

International engineer group IMI has spent £22m in cash on buying Brazilian isolation valve business Grupo InterAtiva.

InterAtiva operates a 9,000 square metre facility near Sao Paolo in which it design, assembles and distributes isolation valves to several end markets including oil and gas, sugar and ethanol production and water treatment.

The group, along with its 70 employees, will join IMI's Severe Service division.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

The consideration, which is being funded by IMI's existing resources and banking facilities, is in addition to a deferred consideration of up to £21m subject to financial targets over the next three years.

"InterAtiva has existing strong customer relationships and approvals in Brazil with both the major engineering, procurement and construction firms and also with the major oil and gas companies," IMI said.

"With an experienced management team, and capacity for final assembly, it will be a strong platform for IMI's existing severe service isolation valve brands, including Orton and TruFlo Rona, to enter this market."

BC