Acquisition

RNS Number : 8963I

Smiths Group PLC

22 March 2010

 



 

News Release

London, 22 March 2010

For immediate release

SMITHS INTERCONNECT BUYS US CONNECTOR FIRM FOR $185M

Smiths Interconnect, a division of global technology business Smiths Group, today announces the $185 million purchase of a leading designer and manufacturer of probe technology for use in industrial and semiconducting testing, and high performance connector applications.

The all-cash purchase of Kansas City-based Interconnect Devices, Inc. (IDI) from Milestone Partners, a Pennsylvania-based private equity firm, is subject to regulatory approval in the US and is expected to complete in early April. The acquisition, expected to be immediately earnings accretive, will be funded primarily from internal resources, reflecting strong cash generation in the first half of fiscal 2010 supported by the receipt of proceeds from surplus properties.

Smiths Chief Executive Philip Bowman said: "Smiths Interconnect operates in a fragmented market with many opportunities for consolidation. IDI is its fifth acquisition in two years and meets our strategic criteria of expanding the product range and extending geographic reach.  Three of these companies have a strong presence in the fast-growing Asian market and have already expanded our microwave and protection technologies.  This transaction also provides a significant Chinese base for our other technology area, connectors."

Smiths Interconnect President Ralph Phillips added: "We are a leading supplier of technically differentiated components that are critical to our customers' products and operations, and command high margins. IDI adds a completely new range of connectors to complement our existing portfolio and provide our customers with a wider range of solutions encompassing multiple connector technologies. With a major plant in China, IDI strengthens our connector operations and will allow us to leverage our existing international sales resources, particularly in Europe which accounts for a quarter of the global connectors market."

IDI designs and produces highly engineered, application specific connectors using a proprietary spring probe contact technology.  It focuses on mission critical applications for semiconductor and circuit-board testing, and high reliability connectors for military, medical, homeland security and industrial markets. 

IDI employs around 560 people, more than half at its Suzhou plant in China, and runs a specialist engineering centre in Gilbert, Arizona. It is expected to generate sales of almost   $80m in the first full year of ownership and deliver strong margins.

ENDS

Investor Relations

Peter Durman

[phone]

Media Relations

Colin McSeveny

[phone]

Smiths Interconnect www.smithsinterconnect.com is a leader in technically differentiated electronic and radio frequency products that connect, protect and control critical systems for the wireless communications, aerospace, defence, space, medical, rail and industrial markets. It is part of Smiths Group www.smiths.com, a global leader in applying advanced technologies for markets in threat and contraband detection, energy, medical devices, communications and engineered components. Smiths Group employs around 22,000 people in more than 50 countries.

Interconnect Devices, Inc. (IDI) www.idinet.com is a leading provider of spring contact probe based technologies, including custom connectors and advanced semiconductor test sockets. Founded in 1979, IDI was acquired in 2007 by an investment group led by Milestone Partners. IDI connectors can be found in a variety of applications within the military, aerospace, medical and industrial markets and its spring contact probe connectors are renowned for their performance in high reliability, fail-safe applications. IDI continues to lead innovation in the semiconductor test industry today with its Antares and Synergetix Test Socket designs that were also the first semiconductor test sockets to use spring contact probe technology. 

 

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