Download - Acquisition of Bopp & Reuther GmbH - IMI plc
Acquisition of Bopp & Reuther GmbH
An excellent strategic fit
Significantly enhances IMI’s presence in the growing power sector
Extends the Critical Engineering division’s existing product range to include
complementary semi-severe products increasing the addressable market
Increases exposure to emerging markets in particular China and India where the power
markets are forecast to grow 5% to 7%
Provides access to new aftermarket opportunities via Bopp & Reuther’s existing installed
base
Creates further opportunities to increase effectiveness through implementation
of lean and operational improvements
Generates synergies of c.€9m by end of 2017
Be earnings accretive in 2015 and returns expected to exceed
WACC by the end of 2017
IMI plc - Acquisition of Bopp & Reuther
✓
✓
✓
✓
✓
✓
✓
‣ A global supplier of control valves and safety valves to the
power generation and process industries
‣ Based in Mannheim, Germany with a network of offices in India, China, Korea and Russia
‣ 57% sales in power, 25% process and 18% service related
‣ Blue-chip customer base – top 10 customers represent circa. 38% of sales
Bopp & Reuther overview
IMI plc - Acquisition of Bopp & Reuther
27%
22%31%
7%
7% 6%
Germany
Rest of Europe
Asia
Middle East
CIS
RoW
18%
82%
Aftermarket
NewConstruction
43%
55%
2%Control valves
Safety valves
Shut-off valves
25%
45%
12%
18%
Process
Fossil Power
Nuclear
Service support
Sales by
Product / Service
Bopp & Reuther overview
Sales by
End Market
Sales by
Geography
IMI plc - Acquisition of Bopp & Reuther
Sales by
Sector
‣ Range of turbine bypass and safety valves used mainly in the
fast-growing markets of India, China & Russia
‣ Protection of gas turbine during start up or fault conditions
‣ Used for Coal fired, combined cycle power generation and
desalination plants
Steam spring loaded
safety valveTurbine Bypass
Complementary product portfolio –Power sector
Nuclear Safety Valves
IMI plc - Acquisition of Bopp & Reuther
‣ Protection for pressure vessels, pipelines, boilers, compressors
‣ Commissioning & Recertification – turbine bypass and
safety valves
‣ Speciality safety products – oxygen, marine applications
‣ Repair & refurbishment – focus on Bopp & Reuther installed base
A wider product offering –Process & service sectors
Controlled Safety
valves
Safety valve
recertificationHigh pressure
gate valves
IMI plc - Acquisition of Bopp & Reuther
Enhanced capabilities
to improve performance
Expanded product range
to drive revenues
GLOBAL PRESENCE
WORLD CLASS CAPABILITY
Lean processes
Global sourcing
Service footprint
Americas
FSU
Middle East
Australia
Africa
Asia
World class capability:Leading product to growing market
▸Power
▸ Turbine bypass for Asia
▸ Safety valves
▸Process
▸ Safety relief valves
▸Associated control products
▸ Desalination
▸Asia focus & growth (5%+)
▸Leading names in industry
▸Speed of response
GROWING MARKET
LEADING PRODUCT
IMI plc - Acquisition of Bopp & Reuther
Increased exposure to high growth markets & segments
Provides access to additional aftermarket opportunities
35%
50%
PARTS & SERVICE
OIL & GAS, POWER
AND PETROCHEMICAL
HIGH GROWTH
MARKETS
40%
PRO FORMA REVENUE
BY SECTOR
PRO FORMA REVENUE
BY GEOGRAPHY
IMI plc - Acquisition of Bopp & Reuther
Based on 2013 actuals
Transaction details
‣ Purchase consideration €152.6m payable at completion
‣ cash / debt free, after expenses
‣ Funded from existing bank facilities
‣ Transaction subject to merger clearance approval, expected to
complete around end of the year
‣ 100 day Integration plan developed and ready for execution
IMI plc - Acquisition of Bopp & Reuther
An excellent strategic fit
Enhances focus and provides a strong platform for accelerated growth
Broadens IMI’s product portfolio in power and process industries
Increases exposures to attractive emerging markets and aftermarket opportunities
Earnings accretive in 2015 and a return on invested capital expected to exceed WACC by the end of 2017
Generates synergies of approximately €9m by end of 2017
IMI plc - Acquisition of Bopp & Reuther
✓
✓
✓
✓
✓
Acquisition of Bopp & Reuther GmbH
Appendices
IMI plc - Acquisition of Bopp & Reuther
Bopp & Reuther financials
Year End Year End Year End
€m Dec ‘11 Dec ‘12 Dec ‘13
Revenue 75.5 84.8 89.8
EBITDA 10.9 13.5 11.2
EBIT 9.9 12.5 10.0
Operating margin (%) 13.1 14.7 11.1
Effective cash flow (%) 30 30 30
Operating cash flow 5.7 7.2 18.9
Working Capital 15.5 19.3 18.9
Net Assets 22.0 27.4 28.2
Source: Accountants Report
IMI plc - Acquisition of Bopp & Reuther
Thank you