Smiths Group plc has confirmed that it has entered into a binding agreement with OSI Systems Inc to sell the explosive trace detection business formerly owned by Morpho Detection (the “Trace Business”) for an enterprise value of $75.5 million. This is following the clearance from US Department of Justice on March 31st 2017 of Smiths Group plc having confirmed that it had completed the acquisition of Morpho Detection from Safran.
In connection with the acquisition of Morpho Detection from Safran, Smiths Group had made commitments to the European Commission (“EC”) and the Department of Justice (“DOJ”) to sell the Trace Business. The sale is conditional upon regulatory approval in Portugal and the approval by the EC and DOJ of OSI Systems Inc as a suitable purchaser. Completion is expected in mid-2017.
