May 24, 2007 -- Birmingham-based engineering group IMI has agreed to acquire US firm Kloehn Co, a provider of specialist pumping and fluid handling systems for the medical sector, for up to £40.6 million (EUR80 million). IMI said it would pay £30.46 million (EUR60 million) in cash on completion, which is expected to take place within the next two months, and then an additional £10.15 million (EUR20 million) depending on performance targets for the year to December.

Kloehn posted underlying operating profit of £2.74 million (EUR5.4 million) on sales of £13.2 million (EUR26 million) for the year to December 2006. Based in Las Vegas, Kloehn is a leading manufacturer of precision syringes and pumps, syringe controls and ceramic valves for the medical equipment industry. Central to Kloehn's success is its excellent relationships with major US medical sector customers.

The medical sector is one of the long term growth areas targeted by IMI's Fluid Power business and Kloehn significantly adds to Norgren's strength in this area. IMI executive director, David Nicholas, said: "Kloehn has built an excellent reputation as a supplier of customised solutions in the medical sector. "The acquisition develops our skill set and complements the existing medical sector operations of our Norgren business, extending our reach into medical diagnostics and analytical markets."

The acquisition will make sad reading to the 165 workers at the group's Norgren factory in Shipston-on-Stour. The factory, which manufactures pneumatic products for the medical industry, is set to close next year. A 12-week fight by the workers and the Amicus union ended in defeat last week when an improved redundancy package was accepted by the employees.

Source: Birmingham Post
Source: Factiva