(Sharecast News) - Engineering giant Smiths Group is beefing up its US heating, ventilation and air conditioning (HVAC) operations with the purchase of Ohio-based Heating & Cooling Products.
The unit was acquired for a total of $82m on a cash and debt-free basis from a private seller. The purchase price represented less than 7x forward EBITDA.
HCP, which will be integrated into the Flex-Tek division, enables Smiths to serve customers in North America with a broader product range, "including HCP's patented axial and radial seal duct technology which improves energy efficiency", the company said in a statement.
"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," said Smiths chief executive Paul Keel.
HCP generated $69m in revenues in its most recent financial year.
Smiths Group (SMIN)