Business
Smiths : Completion of Smiths Detection sale
Smiths : Completion of Smiths Detection
About this update from Smiths Group Plc
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 calen...