Smiths Group Regulatory News (SMIN)

FOR IMMEDIATE RELEASE

30 June 2026

SMITHS GROUP PLC

Completion of Smiths Detection sale

Smiths Group plc ('Smiths' or 'the Company') is pleased to announce that it has completed the sale of Smiths Detection to funds advised by CVC Capital Partners ('CVC') in accordance with the terms of the sale agreement between the parties. The transaction was originally announced on 3 December 2025.

The transaction was completed at an enterprise value of £2bn representing 16.3x headline operating profit of £122m and 12.5x headline EBITDA of £160m. This delivers immediate net cash proceeds to Smiths of more than £1.9bn, ahead of previous guidance of £1.85bn.

This follows the completion of the Smiths Interconnect transaction on 1 April 2026 and, together, the two transactions represent a combined enterprise value of £3.3bn, demonstrating Smiths ability to execute its strategic separation programme ahead of expectations in both timing and value realised.

Roland Carter, CEO of Smiths, said: "This sale completes the delivery of the strategic actions we announced in January 2025. Together with Smiths Interconnect, we have realised a combined enterprise value of £3.3bn - ahead of expectations in both timing and value. This underlines our ability to execute at pace, create value and allocate capital to deliver enhanced returns to shareholders.

"We look to the future as a focused premium industrial engineering company specialising in flow management and thermal solutions, confident that our strategy will deliver both growth and returns for all stakeholders.

"On behalf of everyone at Smiths, I would like to thank our Smiths Detection colleagues for their significant contribution to Smiths. We wish them every success for the future."

Enhanced returns to shareholders

As previously announced, the Company intends to return £1.5bn of the Smiths Detection cash proceeds to shareholders. Following consultation with shareholders, the Board has decided to return this via an on-market share buyback programme to run from completion of the current £1bn programme. The share buyback provides consistency into 2027 and offers an attractive return on investment based on the current share price valuation.

As at 26 June 2026, £567m of the £1bn programme has been executed and Smiths remains on track to complete the initial £600m tranche by the end of July, with the remainder to be completed thereafter. The further £1.5bn programme will then commence and is expected to run through calendar year 2027.

Reflecting the increased size of this on-market programme, the Board will seek additional authority to make market purchases at an upcoming General Meeting on 23 July 2026 at 2pm ('General Meeting').

At the last Annual General Meeting ('AGM'), held on 19 November 2025, shareholders authorised the Company to make market purchases of up to 32,653,430 of its ordinary shares, representing approximately 10% of the issued share capital at 1 October 2025. Since then, the Company has purchased 24,562,861 shares under its buyback programme and it is expected that the remaining capacity of the AGM authority will be fully utilised before the Company's next AGM in November 2026.

The Board therefore will seek additional authority to make market purchases of up to a maximum of 45,040,669 shares, being 14.99% of the issued share capital as at 26 June 2026, for the period between the General Meeting and the next AGM, in order to provide the Board with sufficient headroom to continue the £1bn buyback programme and start the £1.5bn buyback programme, in line with the Company's capital allocation framework. Further details will be provided in the Notice of Meeting which is expected to be published on or around the date of this announcement.

Following the completion of the sale of Smiths Detection, the Board has agreed to disband the Separation Oversight Committee, as its remit is now complete. The Board has also approved establishing a Chairman's Committee with immediate effect, to act on behalf of the Board on delegated matters between scheduled Board meetings. Its members are Steve Williams, Dame Ann Dowling, Alister Cowan and Richard Howes.

No material change

For the purposes of UK Listing Rule 7.3.3, Smiths confirms that there has been no material change affecting any matter contained in Smiths announcement on 3 December 2025.

ENDS

Legal Entity Identifier (LEI): 213800MJL6IPZS3ASA11

About Smiths

For 175 years, we have been pioneers of progress, engineering a better future. Our strategy is to be a focused, efficient and value creating industrial engineering company operating in the attractive and growing market segments of flow control, thermal solutions, construction and aerospace.

We focus on solving the toughest problems for our customers, helping address critical global needs such as decarbonisation and the ever-increasing demand for process and energy efficiency.

We are pioneers of progress. Engineering a better future, we drive efficiency for customers in mission-critical situations.

We are united by our purpose. It is what we do, how we think, and how we will continue to use our passion for innovative engineering. For more information visit www.smiths.com.