West Midlands engineering company IMI to buy Heatmiser for £110m

By Nicky Godding

8 November 2022

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West Midlands-based specialist engineering company IMI plc, which designs, manufactures and services highly engineered products in the fluid industry is to buy Blackburn-based Heatmiser UK Ltd for £110 million, with up to a further £8m based on Heatmiser's future financial performance. Heatmiser will become part of IMI Hydronic Engineering.

IMI employs around 10,000 people, has manufacturing facilities in 19 countries and operates a global service network. The company is listed on the London Stock Exchange and is a constituent of the FTSE4Good Index.

IMI said that the acquisition will accelerate its growth in smart buildings. Adjacent to IMI Hydronic's existing HVAC product offerings, Heatmiser will provide an entry point into connected residential thermostatic control, a fast-growing market where Heatmiser is already a UK leader. There are also significant opportunities to leverage IMI Hydronic's strong brand and market presence to scale Heatmiser's offering across Europe, as well as leverage Heatmiser's proven connected technology capabilities across existing and new IMI products.

The demand for smart temperature controls is growing rapidly and is expected to accelerate further, with more than 200 million buildings in Europe requiring renovation to upgrade their heating and cooling systems over the next 30 years, to comply with energy efficiency and environmental legislation.

In the financial year to December 2022, Heatmiser is expected to generate revenues of c.£22.5m.

Heatmiser was founded by Gordon Kay in 1968 in Blackburn, UK, to develop thermostatic control products for residential buildings. Since then, the company has leveraged technological advancements to become a leading manufacturer of smart thermostats for radiant underfloor systems in the UK, with strong recognition by both installers and end-users. Heatmiser is currently managed by Martyn and Sarah Kay, who will remain in the business and continue to manage it as part of IMI Hydronic.

Roy Twite, Chief Executive of IMI, said: "I am really pleased to announce the acquisition of Heatmiser, which is fully aligned to IMI's strategy of delivering significant shareholder value by solving industry problems and putting customers at the heart of what we do. This is an important, strategic entry point to the rapidly growing connected controls market, that will accelerate our organic growth across IMI Hydronic. There has never been more urgency to deliver energy efficiency and comfort in buildings, and Heatmiser is a leader in this space. I want to personally thank the Kay family for their commitment to the transaction and welcome the entire Heatmiser team into IMI."

By Nicky Godding

Nicky Godding is editor of The Business Magazine. Before her journalism career, she worked mainly in public relations moving into writing when she was invited to launch Retail Watch, a publication covering retail and real estate across Europe.

After some years of constant travelling, she tucked away her passport and concentrated on business writing, co-founding a successful regional business magazine. She has interviewed some of the UK’s most successful entrepreneurs who have built multi-million-pound businesses and reported on many science and technology firsts.

She reports on the region’s thriving business economy from start-ups, family businesses and multi-million-pound corporations, to the professionals that support their growth and the institutions that educate the next generation of business leaders.