IMI to acquire Heatmiser for £110m

Heatmiser, which ranked as the red rose county's fourth most profitable SME in Lancashire Business View's latest Hot 100, is set to be acquired by IMI plc for at least £110m.

Blackburn-based Heatmiser was founded in 1968 developing thermostatic control products for residential buildings and has enjoyed success in recent years by pioneering smart thermostat technology.

In its most recent accounts, the company generated £7.8m pre-tax profit on revenues of £18.1m. It employed a workforce of 100. In the financial year to December 2022, Heatmiser is expected to increase revenues to around £22.5m.

The company was founded by Gordon Kay and remained within the family with Martyn and Sarah Kay at the helm, who will remain in the business.

The proposed initial fee for the sale is £110m, with up to a further £8m based on Heatmiser’s future financial performance. Heatmiser will become part of IMI Hydronic Engineering.

IMI is a Birmingham-based specialist engineering company which designs, manufactures and services highly products that control the precise movement of fluids.

IMI employs around 10,000 people, has manufacturing facilities in 19 countries and operates a global service network. 

Roy Twite, chief executive of IMI, said: "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.”

Martyn Kay and Sarah Kay said: "We feel very proud of the business we have created at Heatmiser and we want to say a big thank you to our team for helping us achieve a market leading position.

"By listening to our customers and reacting to market change, we have become one of the UK’s leading HVAC control brands and we are excited about joining the IMI family and the opportunities this will bring. We are particularly excited about the growth potential of the business in new territories and our joint vision of creating a better more energy efficient world."