LONDON: Smiths Group plc has entered into an agreement for the sale of Smiths Interconnect to Molex Electronic Technologies Holdings, LLC .
The transaction values Smiths Interconnect at an enterprise value of £1.3bn, representing 15.1x headline EBITDA of £86.1m for the fiscal year 2025.
Smiths will receive cash consideration for the transaction which is subject to customary adjustments for working capital, cash and debt.
This announcement demonstrates clear progress against the strategic actions announced on 31 January 2025, designed to maximise value creation, unlock value in the portfolio, and enhance returns to shareholders.
The sale of Smiths Interconnect is a notable step forward in the strategy to become a more focused industrial engineering company. Completion of the Transaction is expected to take place in the second half of fiscal year 2026.
As also announced in January, Smiths is executing against the delivery of enhanced returns to shareholders through its ongoing £500m buyback which is expected to complete by the end of calendar year 2025.
Smiths remains committed to returning a large portion of disposal proceeds from the sale of Smiths Interconnect to shareholders and intends to maintain an investment grade credit rating with the desire to have an efficient balance sheet.
The Board of Smiths will provide an update on the use of proceeds in the Q1 FY2026 Trading Statement scheduled for release on 19 November 2025.
Smiths continues to progress with both the sale and demerger processes in parallel for Smiths Detection, as previously stated.
Roland Carter, Chief Executive of Smiths, said: “This is an important step as we deliver on our commitment to focus Smiths and unlock the inherent value in our business. Today’s announcement, and our recent results, show we are delivering on our strategy with pace and purpose and I am confident that we will continue to do so as we further focus our business as a high-performing industrial engineering company.
“We thank our Smiths Interconnect colleagues for their significant contribution to the Smiths Group over many years and wish them every success as they transition to their new owner, Molex, who is well placed to support their future growth.”