The acquisition is the latest in a string of bolt-on acquisitions that the billionaire’s Berkshire investment group has made in the US and Europe, as Buffett has encouraged the chief executives of his operating companies to seek out smaller, less-risky deals rather than large purchases Marmon is made up of three companies focused on industrial components, transportation services, and retail technologies, recording combined revenue of $7.16bn in 2012.
IMI’s beverage dispensing unit is a leading maker of machines for selling drinks in public places like convenience stores, fast-food restaurants, hospitals and offices.
“These strong businesses are an excellent strategic fit with our existing operations in the food service and retail industries as well as with our decentralised business model,” John Goody, president of Marmon Retail Technologies, said in an statement.
The company said the disposal will allow it to return £620m to shareholders and focus management’s attention on its other activities such as fluid technologies. IMI plans to pay an additional £70m to its pension fund.
In a separate announcement, IMI said trading has been in line with expectations and that full-year results should meet its previous predictions.
Source: MarketWatch
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