Business
Proposed acquisition of Adaptas Solutions
Proposed acquisition of Adaptas Solutions.
About this update from Imi Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 3588S\n IMI PLC\n 15 November 2021\n \n \n \n \n 15 November 2021 \n \n \n Proposed acquisition of Life Sciences manufacturer Adaptas Solutions for $271m\n \n \n Adaptas brings significant, adjacent opportunities to IMI Precision Engineering\n \n \n Post completion balance sheet to remain robust, maintaining strategic flexibility\n \n \n IMI plc (\"IMI\" or the \"Group\") announces the proposed acquisition of Adaptas Solutions (\"Adaptas\") for an enterprise value of $271m (£202m1). Adaptas Solutions will become part of IMI's Precision Fluid OEM Business Unit within IMI Precision Engineering. For the year ending 31 December 2021, Adaptas solutions is expected to generate revenues of c.$83m, with adjusted EBITDA of c.$17m (21% margin) and adjusted EBIT of c.$14m (17% margin), all on an IFRS basis. The acquisition reflects a purchase multiple of 16x adjusted 2021 EBITDA.\nThe proposed acquisition of Adaptas Solutions is fully aligned with IMI's strategy and purpose [Breakthrough Engineering for a better world] and represents a highly attractive opportunity to deepen IMI Precision Engineering's Life Science offering with a complementary product portfolio and strong relationships with leading global analytical instrument manufacturers. Closing is expected to take place before 31 December 2021, subject to customary merger filings. \n \n Adaptas overview\n \n Adaptas is a manufacturer of mission critical mass spectrometry subsystems and components, such as electron multipliers, filaments, power supplies and ion optic grids, as well as liquid handling and lab automation components. The company is based in Palmer, Massachusetts, USA and also has facilities in Pennsylvania USA, West Sussex in the UK, New South Wales in Australia, and Qidong in China. Jay Ray (CEO) and Laura Ray (SVP, Global Integration), family owners of the business prior to the investment by Ampersand Capital Partners in 2018, will remain with the business post-acquisition, to drive profitable growth of the combined Adaptas and IMI product portfolios.\n \n Transaction highlights\n \n § \n The acquisition extends IMI Precision Engineering's product portfolio further into Life Sciences - fully in-line with IMI's stated strategy to develop into sustainable, profitable adjacencies.\n \n \n § \n Adaptas' business model of developin...