Acquisition of TRAK Comms Inc
Smiths Group PLC
26 April 2004
Smiths strengthens Interconnect business with $111.5 million US acquisition
Smiths Group today announced the acquisition of TRAK Communications Inc., a
leader in the design and manufacture of microwave sub-systems, antennas and
related components, for $111.5 million (£63m) from Veritas of New York. TRAK
will form part of Smiths Interconnect, a leader in the supply of application
specific electronics for military and commercial markets. This acquisition is
the fifth Smiths has announced since presenting its interim results on 10 March,
bringing total expenditure to $330.5 million (£187m).
Commenting on this acquisition, Smiths Group chief executive Keith
Butler-Wheelhouse said; 'Smiths continues to pursue its strategy of profitable
growth through investing in new technology and the acquisition of businesses
which complement or expand our offering to the customer. This is our fifth
purchase announcement in five weeks and underlines our intent to acquire high
growth companies.'
TRAK, with 425 employees and 2003 turnover of $71 million (£40m) operates from
facilities in Tampa in Florida, Thousand Oaks, California and Dundee, Scotland.
Smiths Group is satisfying the acquisition consideration in cash. It is
expected to close at the end of May, subject to regulatory approvals.
Einar Lindh, group managing director of Specialty Engineering added; 'TRAK
brings a portfolio of world-class microwave sub-systems which is complementary
to Interconnect's products. It will extend our capability in existing markets,
and by packaging together Interconnect and TRAK products, we will enhance our
position with customers.'
Smiths Group designs and manufactures safety critical systems and products, and
has market leading positions in aerospace systems, detection systems, medical
devices, mechanical seals, and interconnect products.
For further information, visit www.smiths-group.com
Enquiries:
Media: Bernard Carey: 020 8457 8403 Investors: Russell Plumley 020 8457 8203
Caroline Harris: 020 8457 8306
Notes to Editors:
About TRAK Communications Inc.
Founded in 1960 as TRAK Microwave, the business developed with the acquisition
of TECOM and TRAK Europe, before being acquired by Veritas, a New York private
equity company. TRAK has market leading positions in three key technologies: '
sources', devices used to generate highly accurate base frequencies for
communication systems; ferrites, magnetic devices used to isolate or combine
microwave signals; and rugged antennas for military and airborne applications.
Sales to governments, or to projects whose ultimate customers are government
agencies, account for over half of TRAK's business, principally US defence
projects , unmanned vehicles and avionics applications. Significant defence
customers include Raytheon, BAE Systems, Northrop Grumman, Harris and Boeing.
TRAK also enjoys good positions on commercial projects with major customers such
as Nokia, Motorola, and Ericsson.
About Smiths Interconnect
Smiths Interconnect offers a broad range of electrical and electronic
connectors, low loss coaxial, cable and connector assemblies, microwave
components, antennas, lightning strike protectors, electrical surge suppressors,
radio-frequency connectors and passive intermodulation analysers. They are
supplied to military and commercial customers for integration into systems which
require high standards of connectivity, longevity and durability. For details
of Smiths Specialty Engineering visit www.smithsspecialtyengineering.com
Fifth Smiths acquisition in five weeks
Since announcing its Interim results on 10 March 2004, Smiths has acquired;
10 March ...Cyrano (Detection) $15 million
10 March ...Smiths Medical Japan (Medical) $27 million
15 March ...DGT (Aerospace) $102 million
07 April ... SensIR (Detection) $75 million
22 April ... TRAK (Interconnect) $111.5 million
A total including TRAK of ... $330.5 million (£187m)
(Exchange rate $1.7679/£ as at close on 21/04/04)
- ends -
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