UK-based engineering firm IMI has signed a deal to sell its Beverage Dispense and Merchandising units, called Retail Dispense, to The Marmon Group, a Berkshire Hathaway company, for a cash consideration of $1.1bn.

The deal is subject to customary adjustments for the amount of working capital and regulatory approvals, and is expected to close in early 2014.

The Beverage Dispense unit includes the Cornelius, 3-Wire and Display Technologies businesses.

Cornelius offers still and carbonated dispense solutions for market segments such as water, juice, frozen beverages and smoothies, whereas 3-Wire offer supply chain solutions and distribution services for beverage and foodservice industries in North America and Display Technologies offer in store merchandising solutions for beverage and food sector.

The Merchandising division includes the DCI-Artform and Cannon Equipment businesses.

With the sale of Beverage Dispense and Merchandising units, IMI aims to focus on its flow control solutions in industrial markets.

IMI CEO Martin Lamb said the disposal of Retail Dispense positions IMI as a highly differentiated, market leading flow control business focused entirely on industrial end markets.

"With these end markets set to benefit further from favourable structural trends such as climate change and urbanisation, and cumulative investments in R&D gaining traction, the prospects for accelerated long term growth are encouraging," Lamb added.

"The Beverage Dispense and Merchandising businesses have been improved significantly over the last few years as they have focused their efforts on higher added value and more differentiated opportunities.

"I believe that Marmon, with its scale and focus on the retail space, will be an excellent long term owner of the business."