Specialist engineering group IMI announced on Wednesday that its acquisition of Heatmiser was now complete.
The FTSE 250 company announced the acquisition plans on 8 November, for an enterprise value of £110m, with up to a further £8m based on Heatmiser’s future financial performance
It said Heatmiser would become part of IMI Hydronic Engineering.
The firm said in its initial announcement that the acquisition would extend IMI Hydronic’s energy saving product portfolio, adding a range of adjacent smart thermostatic control products for room temperature control.
It would also allow IMI to capitalise on growing demand for smart temperature controls, which was expected to accelerate further in coming years.
The board said there was “significant commercial synergy potential” between Heatmiser and IMI Hydronic, accelerating Heatmiser’s growth into mainland Europe by leveraging IMI Hydronic’s brands, expertise, reputation with installers and existing commercial infrastructure.
IMI said the acquisition was expected to be growth, margin and earnings accretive to the company, as well as deliver returns above cost of capital by the third year, “fully aligning” with its merger and acquisition criteria.
“With Heatmiser’s expertise in connected controls, we have created a significant opportunity to accelerate our growth in smart buildings,” said chief executive officer Roy Twite.
“Our combined expertise will help solve key industry problems, enable more energy efficient buildings and deliver our purpose.”
Reporting by Josh White for Sharecast.com.
