Smiths Group divests Interconnect's Power business
News Release
London, 26 January 2017
For immediate release
Smiths Group divests Interconnect's Power business for £162 million
Smiths Group plc ("Smiths Group" or the "Company") today announces that it has completed the sale of Smiths Interconnect's Power business ("Power"), to Dunes Point Capital, LLC, a family office and private investment firm, located in Rye, NY, for an enterprise value of £162 million.
This disposal is part of an ongoing corporate programme to focus the Company's portfolio on market leading scalable positions in its chosen markets. The proceeds will be reinvested in attractive growth opportunities for the Company.
Power is a provider of custom power distribution and monitoring solutions that ensure power quality in sensitive environments such as data centres, telecoms, medical and defence. Power reported total revenues of £88 million in the year ended 31 July 2016, representing 20% of Smiths Interconnect revenue, with operating profit of £11 million.
Andy Reynolds Smith, Chief Executive of Smiths Group, said:
"We continue to make progress in focusing our portfolio to position Smiths Group for long-term growth markets where leading positions can be developed that have innovation at their heart.
"This disposal is part of a restructuring plan for Smiths Interconnect to provide a greater focus on markets and customers where our advanced connector and microwave technologies bring most value and potential.
"Since starting our programme, we have disposed of £150 million of revenue and released over £330 million of capital for reinvestment in opportunities that offer the best levels of growth and value creation for the Company around the world."
Harris Williams & Co. acted as exclusive financial advisor to Smiths Interconnect's Power business on the sale.
ENDS
Contact details
Investor enquiries
Andrew Lappin, Smiths Group
+44 (0)20 7004 1657
+44 (0)78 0500 7035
Kirsty Law, Smiths Group
+44 (0)20 7004 1672
+44 (0)75 8315 4386
Media enquiries
Andrew Lorenz, FTI Consulting
+44 (0)203 727 1323
+44 (0)777 564 1807
Deborah Scott, FTI Consulting
+44 (0)203 727 1459
+44 (0)797 953 7449
Smiths Group is 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. Smiths Group employs more than 22,000 people in over 50 countries. For more information visit www.smiths.com.
Smiths Interconnect is a recognised leader in technically differentiated electronic components and sub-systems providing signal, power and microwave solutions. Smiths Interconnect designs and manufactures application-specific products, incorporating innovative technologies that connect, protect and control critical systems for the global data centre, wireless telecommunications, aerospace, defence, space, medical, rail, test and industrial markets.
Disclaimer
This announcement contains certain statements that are forward-looking statements. They appear in a number of places throughout this announcement and include statements regarding our intentions, beliefs or current expectations and those of our officers, directors and employees concerning, amongst other things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the business we operate. By their nature, these statements involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. The forward-looking statements reflect knowledge and information available at the date of preparation of this announcement and, unless otherwise required by applicable law, Smiths undertakes no obligation to update or revise these forward-looking statements. Nothing in this document should be construed as a profit forecast.
No statement in this announcement is intended to be a profit forecast and no statement in this announcement should be interpreted to mean that earnings per Smiths ordinary share for the current or future financial years would necessarily match or exceed the historical published earnings per Smiths ordinary share. Prices and values of, and income from, shares may go down as well as up and an investor may not get back the amount invested. It should be noted that past performance is no guide to future performance. Persons needing advice should consult an independent financial adviser.
This information is provided by RNS
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