LONDON, UK: Smiths Group plc, a leading industrial technology company, has acquired Heating & Cooling Products (HCP), a US-based manufacturer of Heating, Ventilation & Air Conditioning (HVAC) solutions.
The addition of HCP will further expand Smiths Group’s presence in the North American HVAC market, enabling Smiths to serve customers with an even broader product range, including HCP’s patented axial and radial seal duct technology which improves energy efficiency.
Smiths acquired HCP for $82m (approximately £65m) on a cash and debt-free basis. HCP’s unaudited revenue for the 12 months to 31 July 2023 was $69m (approximately £55m). HCP was purchased from a private seller in a proprietary transaction for less than 7x estimated 2023 EBITDA. HCP will be integrated into Smith’s Flex-Tek division.
Paul Keel, CEO of Smiths Group, said: “Smiths has now posted eight straight quarters of growth, and the addition of HCP allows us to further build on this momentum by adding synergistic capabilities, through an accretive transaction, in a market we know well. We welcome our new colleagues from HCP to Smiths!”