Smiths Group plc has entered into an agreement for the proposed sale of Smiths Detection to funds advised by CVC Capital Partners. The proposed transaction values Smiths Detection at an enterprise value of £2.0bn, representing 16.3x headline operating profit of £122m and 12.5x headline EBITDA of £160m for the financial year ending 31 July 2025. Based on customary adjustments, Smiths expects to receive net cash proceeds of approximately £1.85bn.
The Proposed Transaction, in combination with the recently announced sale of Smiths Interconnect, represents significant further progress on the strategic actions announced in January 2025. This repositions Smiths as a focused, high-performance, industrial engineering company, and delivers significant value for all stakeholders.
Subject to completion of information and consultation processes (the Consultation) with the works council of Smiths Detection France SAS (the Works Council), and customary regulatory approvals, completion of the Proposed Transaction (Completion) is expected in the second half of calendar year 2026.
Roland Carter, Chief Executive of Smiths, said: “Today we have reached another significant milestone for Smiths, with the agreement to sell Smiths Detection to CVC for an enterprise value of £2.0bn. This builds on our recently announced sale of Smiths Interconnect and demonstrates strong execution against the strategic actions we set out in January centred on value creation.
“We are focusing on Smiths as a premium industrial engineering company specialising in flow management and thermal solutions, and today’s announcement positions us strongly to deliver enhanced growth and returns. “We thank our Smiths Detection colleagues for their significant contribution to Smiths and their help in reaching this milestone.”
Smiths announced plans to separate both Smiths Detection and Smiths Interconnect in January 2025. The sale of Smiths Interconnect to Molex Electronic Technologies Holdings, LLC was announced on 16 October 2025. With the Proposed Transaction, Smiths is now in the process of executing both major portfolio actions outlined in the January strategic update.
After a competitive sale process, the Smiths Board of Directors concluded that the terms of the proposed transaction represented a compelling value proposition, and a more compelling outcome than the alternative demerger which was also under consideration.
The Smiths Board believes the terms of the Proposed Transaction are in the best interests of Smiths shareholders as a whole.
The Proposed Transaction, due to its size in relation to Smiths Group plc, is a significant transaction for the purposes of the UK Listing Rules of the Financial Conduct Authority (the UKLRs) and is therefore notifiable in accordance with UKLR 7.3.1R and 7.3.2R.
