UK-based engineering firm IMI has entered into an agreement to sell its Beverage Dispense and Merchandising divisions, together called Retail Dispense, to Berkshire Hathaway’s Marmon Group for about $1.1bn.
This move comes as engineering firm aims to focus on industrial valves and fluid control systems business.
During March 2013, IMI has decided to explore options to dispose the majority of the Merchandising business. However, the company has received an alternative unsolicited proposal from Marmon for the entire Retail Dispense business.
Commenting on the transaction, IMI chief executive Martin Lamb said that the disposal of Retail Dispense is a major step for IMI and it positions IMI as a highly differentiated, market leading flow control business focused entirely on industrial end markets.
Marmon chief executive Frank Ptak said, "We look forward to welcoming all of the employees of IMI's Beverage Dispense and Merchandising businesses into Marmon.
"The IMI Beverage Dispense and Merchandising businesses will become an integral part of the Marmon Retail Technologies company, one of three Marmon companies that together comprise approximately 160 independent manufacturing and service businesses worldwide," added Ptak.
Currently, the Retail Dispense business has around 3,100 employees.
JP Morgan Cazenove and Citigroup Global Markets have provided financial advisory services for the transaction.
