Smiths Group divests Interconnects 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.