By Ben Simmons

IMI plc, (LSE: IMI) the international engineering group, has acquired Grupo InterAtiva, a Brazilian isolation valve business from its founding partners for an initial cash consideration of £22m and deferred consideration up to a maximum of £21m payable based on delivery of stretching financial targets over the next three years. The consideration is being funded out of IMI's existing resources and banking facilities.

Founded in 1992 by Wilson Gabriel and Mauro Bilbao, InterAtiva was privately owned and designs, assembles and distributes isolation valves to various end markets including oil and gas, sugar and ethanol production and water treatment. It operates a 9000sq metre facility located in Sorocaba, near Sao Paolo and employs 70 people who are all transferring with the business. For 2011, InterAtiva’s unaudited sales were £12m and underlying EBITDA was £3m, and all of the 2011 sales were in the fast growing South American markets.

InterAtiva will join IMI's Severe Service division, which is a leading global provider of custom engineered valve, actuation, and control solutions for critical in-plant processes, focusing on the Power Generation, Oil and Gas, Petrochemical and Iron and Steel markets. InterAtiva has existing strong customer relationships and approvals in Brazil with both the major engineering, procurement and construction firms and also with the major oil and gas companies. With an experienced management team, and capacity for final assembly, it will be a strong platform for IMI’s existing severe service isolation valve brands, including Orton and TruFlo Rona, to enter this market.

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