20
DEALMAKERS
IN ASSOCIATION WITH:
A SMART MOVE
The ongoing need to drive down energy bills and the accelerating transition to a greener future has powered the multi-million pound sale of an innovative Lancashire family business.
Blackburn-based Heatmiser, ranked fourth in last year’s Lancashire Business View’s Hot 100 list of the county’s most profitable SMEs, was acquired by a FTSE 250 business in a £110m deal.
The sale, in November, came as dealmakers revealed that the need for energy efficiency and the continuing journey towards net zero are driving the UK M&A market.
Looking back at the third quarter of 2022, Steve Ivermee, UK strategy and transitions leader at accountancy group EY, said: “A total of 459 completed domestic and cross-border deals took place during the quarter, predominantly in sectors like industrials, technology and energy, driven by the current energy market challenges and broader energy transition efforts.”
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 was expected to increase revenues to around £22.5m.
The company, based on the Shadsworth Business Park, was founded by Gordon Kay and had
Roy Twite
It believes that acquisition will bring “significant growth opportunities” in the UK and in Europe and represents an opportunity to accelerate its development in smart buildings.
The demand for smart temperature controls is growing rapidly and is expected to accelerate further, with more than 200 million buildings
remained within the family, with Martyn and Sarah Kay at the helm. They 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. The business will become part of IMI Hydronic Engineering.
IMI is a Birmingham-based specialist engineering group employing around 10,000 people. It has manufacturing facilities in 19 countries and operates a global service network.
in Europe requiring renovation to upgrade their heating and cooling systems over the next 30 years to comply with energy efficiency and environmental legislation.
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.”
Heatmiser is one of the UK’s leading smart thermostatic control manufacturers for radiant systems, enabling homeowners to accurately control heating and cooling in each room remotely.
The company’s success has been based on its portfolio of high-quality products, strong customer relationships, digitalised commercial model and technical support.
It has established partnerships with heating installers and heating equipment manufactures across the UK. The company delivers more than 90 per cent of its products in the UK as well as in Europe, Australia, New Zealand, South Africa and China, where it operates a subsidiary in Beijing.
Martin and Sarah 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.
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