US Acquisition Expands Telecoms Interests
Smiths Industries PLC
17 January 2000
US acquisition expands Smiths Industries telecoms interests
Smiths Industries is expanding its interconnect activities serving the fast
growing mobile telecoms market, with the acquisition of EMC Technology, a
leading US supplier of passive microwave products, for $42.15 million (£26
million) in cash. The purchase of EMC supports Smiths Industries' development
strategy for interconnect products, following the $52.4 million (£32.3
million) acquisition of Sabritec in the US, announced last month.
Commenting on the acquisition, chief executive Keith Butler-Wheelhouse said:
'The mobile telecoms infrastructure market is a high growth area where we have
a lot to offer. EMC adds considerably to our range of core technologies and
sits comfortably alongside Smiths Industries' existing businesses making
premium interconnect products for the connection and protection of many vital
electronic and electrical systems.'
Since mid-1997 Smiths Industries has added to existing operations serving the
global telecoms sector by investing $107 million in acquiring three North
American suppliers, including EMC. Among the benefits for telecoms customers
will be a wider product range which can be offered as an integrated package.
EMC's products are critical components in cellular telephone base stations, a
market which is experiencing rapid world-wide growth, with 100,000 stations
forecast to be built in North America alone by 2002. EMC is also well-placed
with the major cellular telecoms companies to benefit from enhancements to
existing systems, and from forthcoming 3rd generation technologies. Further
substantial growth opportunities will occur for EMC in the use of its products
in the new broadband satellites due to go live over the next few years.
EMC employs proprietary technologies in key wireless telecoms components which
control signal strength and protect other base station system components from
excess or reflected microwave energy. The company is headquartered in New
Jersey, with further manufacturing operations in Costa Rica, and employs 200
people.
Smiths Industries is acquiring the business from Strategic Investments &
Holdings Inc., an investment company which holds 65% of the share capital, and
from private shareholders. For the year to 31 December 1999, EMC is expected
to report sales of almost $20 million with operating profits of at least $5
million. Completion of the agreement is subject to US regulatory approval,
expected within one month.
Smiths Industries is a world leader in advanced electronic and electrical
systems for the aerospace industry; single-use devices and critical care
equipment for the healthcare sector; and specialised products for the
interconnect and air handling markets.
Press enquiries to:
Richard Bayliss
Tel: 020 8457 8306
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