IMI sees organic growth ease in Q3, buys German valve firm

14th Nov 2014 07:04

Engineering group IMI said that organic growth eased in the third quarter, but full-year results should still be in line with forecasts, as it announced the £120m acquisition of German power valve specialist Bopp & Reuther.IMI, which focuses on the precise control and movement of fluids in critical applications, said organic revenues in the four months to October were just 1% ahead of the prior year when adjusted for acquisitions, disposals and exchange rate movements, slowing from the 3% growth registered in the first half.On a reported basis, sales dropped by 6% year-on-year during the period on the back of ongoing currency headwinds, worse than the 3% decline in the first six months."Overall results for the year are still expected to be broadly in line with current market expectations, despite market conditions being more difficult than anticipated particularly in Germany," IMI said.The company continues to target "modest" organic revenue growth for the year and has already guided to lower margins due to investments.In a separate statement, the company said it would be buying B&R Holding, otherwise known as Bopp & Reuther, which specialises in the design and manufacture of control and safety valves for the power generation industry.The company, which generated revenues €90m in 2013, will become part of IMI's critical engineering unit and expand its position in the power sector and exposure to emerging markets.IMI said the two businesses' operations are already "very closely aligned" and the deal is expected to result in synergies of €9m by the end of 2017.