Smiths Group announces two North American acquisitions for up
to £110m[1]
Smiths Group plc, a leading
industrial technology company, announces today that it is acquiring
two North American companies, Modular Metal Fabricators, Inc., and
Wattco, Inc. for a combined purchase price of up to £110m. These
two companies will be integrated respectively into the Heating,
Ventilation & Air Conditioning (HVAC) and electrical heating
solutions platforms within Smiths Group's Flex-Tek
business.
Modular Metal Fabricators is a
US-based metal and flexible ducting manufacturer. The acquisition
of Modular Metal Fabricators is expected to complete on 1 October
2024, expanding Smiths Group's geographical coverage of the HVAC
sector in the western United States and
broadening its product range to include Modular Metal's sealed
flexible duct solution.
Wattco is a
Canadian-based electric heating solutions provider. The acquisition
provides the opportunity to expand into medium temperature
immersion and circulation heating - which is an attractive sector
adjacency and highly complementary to Smiths Group's existing open
coil electrical heating business.
Roland Carter, CEO of Smiths Group, said:
"These strategic and disciplined acquisitions
represent a meaningful expansion in our HVAC and electrical heating
solutions segments. Each business brings a highly complementary
customer base, product range and approach to technology, while
enhancing our geographical coverage. We welcome the teams into the
Smiths business and look forward to serving existing and new
customers in the best possible way."
The companies were acquired for a
combined c.8x trailing 12 months EBITDA and are accretive to Flex-Tek's operating margin.
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About Smiths Group
For over 170 years, Smiths has been
pioneering progress by engineering a better future. We serve
millions of people every year, to help create a safer, more
efficient and productive, and better-connected world across four
global markets: energy, security & defence, space &
aerospace, and general industrial. Listed on the London Stock
Exchange, Smiths employs c.15,000 colleagues in over 50
countries. For more information
visit www.smiths.com.
Investor enquiries
Siobhán Andrews
+44 (0)7920 230093
siobhan.andrews@smiths.com
Ana Pita da Veiga
+44 (0)7386 689442
ana.pitadaveiga@smiths.com
Media enquiries
Tom Steiner
+44 (0) 7787 415891
tom.steiner@smiths.com