Institute of Motor Industry (IMI) shares rose 2.7% to 1,403p in early morning trading on Monday, following the firm’s proposed acquisition of electric liner motor specialist Bahr Modultechnik for €98 million.
Bahr Modultechnik is based in Luhden, Germany, and is currently owned by IK Partners.
The company is reportedly set to join IMI’s Industrial Automation Business Unit within IMI Precision Engineering, with co-CEO Cihan Halavurt and co-CEO and co-Founder Dick Bahr confirmed to remain at the business post-acquisition to assist with the maximisation of growth potential after the merger.
The acquisition is reportedly in line with IMI’s strategy of ‘breakthrough engineering for the better world’, and will allow the firm to develop a power agnostic series of pneumatic and electric liner motion systems.
“I am pleased to welcome Bahr Modultechnik to IMI. The company has a fantastic product portfolio that is highly scalable in attractive growth markets,” said IMI Precision Engineering divisional manager Beth Ferreira.
“We are looking forward to working with Cihan, Dirk and the entire Bahr team to leverage this fantastic opportunity and drive growth together.”
IMI confirmed that the purchase price implies a multiple estimated at 13.5 times the stand-alone forecasted EBITDA, excluding the growth synergy potential from the acquisition of the company.
Bahr Modultechnik reportedly grew revenue from 2019 to 2021 through the Covid-19 pandemic at a 12% CAGR and 27% growth for the initial four months of 2022.
“In the context of growing demand for automated solutions across various industries including warehouse automation and material handling, IMI has recognised the potential of Bahr Modultechnik and presented a vision that is strategically compelling for both Bahr and IMI. In IMI, we have found a partner who appreciates the value of our brand and capabilities and will support the company in its long-term global growth trajectory,” said Bahr.
“We will continue our successful course and open up new potential, as well as long-term stability, for our customers and employees by belonging to a successful Group.”
The deal is projected to close by mid-June 2022.
