Last checked at 2 May 2017 07:00
News Release
London, 2 May 2017
For immediate release
Smiths Group divests Interconnect's Microwave Telecoms business for £85 million
Smiths Group plc ("Smiths Group" or the "Company") today announces that it has completed the sale of Smiths Interconnect's Microwave Telecoms business ("SMT"), to Infinite Electronics Inc, a portfolio company of Genstar Capital, a San Francisco-based private equity firm, for an enterprise value of £85 million.
This divestment is part of the ongoing corporate programme to concentrate the portfolio on scalable market leading positions in the Company's chosen markets. The proceeds will be reinvested in attractive growth opportunities for the Company.
SMT is a manufacturer of components, sub-assemblies, antennas and test system solutions, serving the communications, defence, medical, rail and energy markets. Products are primarily used to support the build-out and upgrading of wireless telecommunications infrastructure. SMT reported total revenues of £78 million in the year ended 31 July 2016, representing 18% of Smiths Interconnect's total revenue, with operating profit of £3 million.
Andy Reynolds Smith, Chief Executive of Smiths Group, said:
"This divestment shows further progress in focusing Smiths Group's portfolio as we reposition ourselves for long-term growth in markets where we can build leading positions.
"Having sold the Power business in January, we have now focused Smiths Interconnect on markets and customers where our advanced connector and microwave core technologies bring most value and potential.
"Since starting our programme, we have divested around £230 million of revenue and released over £400 million of capital for reinvestment in opportunities that offer attractive levels of growth and value creation for the Company around the world."
KPMG Corporate Finance acted as exclusive financial adviser to Smiths Interconnect on the sale.
ENDS
Contact details
Marion Le Bot, Smiths Group
+44 (0)20 7004 1672
+44 (0)75 8315 4386
marion.lebot@smiths.com
Media enquiries
Andrew Lorenz, FTI Consulting
+44 (0)203 727 1323
+44 (0)777 564 1807
smiths@fticonsulting.com
Deborah Scott, FTI Consulting
+44 (0)203 727 1459
+44 (0)797 953 7449
smiths@fticonsulting.com
Smiths Group is a global technology company listed on the London Stock Exchange (SMIN) and operates a sponsored level one ADR programme (SMGZY). A world leader in the practical application of advanced technologies, Smiths Group delivers products and services for the threat & contraband detection, medical devices, energy and communications markets worldwide. Smiths Group employs more than 22,000 people in over 50 countries. For more information visit www.smiths.com.
Smiths Interconnect is a recognised leader in technically differentiated electronic components and sub-systems providing signal, power and microwave solutions. Smiths Interconnect designs and manufactures application-specific products, incorporating innovative technologies that connect, protect and control critical systems for the global data centre, wireless telecommunications, aerospace, defence, space, medical, rail, test and industrial markets.
About Infinite Electronics
Based in Irvine, CA, Infinite Electronics offers a broad range of RF components, assemblies and wired / wireless connectivity solutions, serving the aerospace/defense, industrial, government, consumer electronics, instrumentation, medical and telecommunications markets. Operating under the Pasternack, Fairview Microwave, L-com, MilesTek, KP Performance Antenna and Aiconics brand names, Infinite Electronics serves a global engineering customer base with deep technical expertise and one of the broadest inventories of products available for immediate shipment. The Company serves over 100,000 customers via the broadest inventory in the industry, coupled with expert technical support and a global distribution footprint with same-day shipment capabilities. Infinite Electronics offers a compelling value proposition to R&D engineers, MRO technicians, and other technically oriented customers.
Disclaimer
This announcement contains certain statements that are forward-looking statements. They appear in a number of places throughout this announcement and include statements regarding our intentions, beliefs or current expectations and those of our officers, directors and employees concerning, amongst other things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the business we operate. By their nature, these statements involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. The forward-looking statements reflect knowledge and information available at the date of preparation of this announcement and, unless otherwise required by applicable law, Smiths undertakes no obligation to update or revise these forward-looking statements. Nothing in this document should be construed as a profit forecast.
No statement in this announcement is intended to be a profit forecast and no statement in this announcement should be interpreted to mean that earnings per Smiths ordinary share for the current or future financial years would necessarily match or exceed the historical published earnings per Smiths ordinary share. Prices and values of, and income from, shares may go down as well as up and an investor may not get back the amount invested. It should be noted that past performance is no guide to future performance. Persons needing advice should consult an independent financial adviser.