London, 2 September 2011
For immediate release
SMITHS INTERCONNECT BUYS POWER HOLDINGS FOR $235M
Smiths Interconnect, a division of global technology business Smiths Group plc, today announces the purchase of Power Holdings Inc. (PDI), a leading designer and manufacturer of specialist power distribution, conditioning and monitoring systems. The purchase price of $235m will be subject to post closing adjustments with respect to working capital at completion.
Based in Richmond, Virginia, PDI is the parent company for Power Distribution, Inc., Marelco Power Systems, Inc. and Onyx Power, Inc. It produces power distribution units, static transfer switches, remote power panels, power conditioning units, medium and low voltage transformers and patented power monitors used mainly in data centre and alternative energy applications. The acquisition, from private equity firm Bertram Growth Capital I, L.P., will be cash-funded and is subject to regulatory approval.
Smiths Group Chief Executive Philip Bowman said: "Smiths Interconnect operates in a highly fragmented market that offers great scope for consolidation. PDI is its sixth and largest acquisition in three years, all adhering to our strategic criteria of adding complementary technologies, extending geographic reach or leveraging existing sales networks. This latest transaction expands its range of power quality technologies into new, specialised, high growth markets."
Smiths Interconnect's strategy is to build its core technology groups: microwave; connectors and power management. Recent acquisitions have significantly expanded the product offerings and capabilities of the connectors and microwave groups. The acquisition of PDI transforms the existing power protection group with a new range of products and growth opportunities.
Smiths Interconnect President Ralph Phillips added: "The addition of PDI strengthens our offering of technically differentiated solutions for applications requiring ultra-reliable and precise power performance including higher-growth end markets such as data centres and alternative energy. We will now be able to provide a breadth of high reliability power quality capabilities, including conditioning, protection, distribution, filtering and monitoring to ensure the optimum function of advanced electrical systems."
PDI, which also has facilities in Santa Ana, California and Howell, Michigan, employs around 370 people. It is expected to generate sales of around $156 million this calendar year with more than 90% of revenues from non-government funded markets.
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Anthony Cardew - Cardew Group
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Smiths Interconnect www.smithsinterconnect.com is a leader in technically differentiated electronic and radio frequency products that connect, protect and control critical systems for the wireless communications, aerospace, defence, space, medical, rail, test and industrial markets. It is part of Smiths Group www.smiths.com, a global technology company listed on the London Stock Exchange (SMIN) and operates a sponsored level one ADR programme (SMGZY). A world leader in the practical application of advanced technologies, Smiths Group delivers products and services for the threat & contraband detection, medical devices, energy and communications markets worldwide. Our products and services make the world safer, healthier and more productive. Smiths Group employs more than 23,000 people in over 50 countries. For more information visit www.smiths.com