Acquisition

RNS Number : 9106C

Smiths Group PLC

04 October 2018

 

 

 

 

News Release

London, 4 October 2018

For immediate release

Smiths Group further strengthens Flex-Tek with acquisition of
United Flexible for $345m

Smiths Group plc ("Smiths" or "the Group") today announces that it has entered into an agreement to acquire United Flexible, Inc. ("United Flexible"), a provider of flexible and rigid engineered solutions for the transfer of fluids and gases in performance-critical environments, from Arlington Capital Partners for an enterprise value of $345m.

United Flexible will be integrated into the Group's Flex-Tek division.  The acquisition strengthens Flex-Tek's positions in aerospace and industrial end markets globally. United Flexible already supports important aerospace platforms, including the A320neo and PW1000G and F135 engines.  It has 4 operations in the US and 3 in Europe, which will enhance Flex-Tek's geographic footprint.

In the 12 months to 31 December 2018, United Flexible is expected to generate sales of $157m and adjusted EBITDA of $32m.

The acquisition consideration will be payable from existing cash and bank facilities. Completion of the acquisition is expected to take place in the second half of FY2019 and is conditional upon regulatory clearances in the US, as well as other customary closing conditions.

Andy Reynolds Smith, Chief Executive of Smiths Group, said:

"This acquisition is consistent with our strategy of high-grading the portfolio for growth, through organic and inorganic investment as well as active portfolio management.

Flex-Tek has a track record of consistent delivery, underpinned by strong market positions and operational performance. The acquisition of United Flexible will strengthen our position in aerospace and industrial end markets globally.

United Flexible is a high-quality growth business with complementary positions on a number of growing aerospace platforms and in industrial markets. I am delighted to welcome the United Flexible team to Smiths Group."

Gleacher Shacklock LLP acted as financial adviser to Smiths Group on the transaction.

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Enquiries:

Investor enquiries
Jemma Spalton, Smiths Group [phone] [phone] [e-mail]	Marion Le Bot, Smiths Group [phone] [phone] [e-mail]
Media enquiries
Deborah Scott, FTI Consulting [phone] [phone] [e-mail]	Alex Le May, FTI Consulting [phone] [phone] [e-mail]

Legal Entity Identifier (LEI): 213800MJL6IPZS3ASA11

About Smiths Group

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 medical technology, security & defence, energy, space & commercial aerospace, construction, transportation and general industrial markets worldwide. Smiths Group employs c.22,000 colleagues in over 50 countries. For more information visit www.smiths.com.

Flex-Tek provides innovative components to heat and move fluid and gases for the aerospace, medical, industrial, construction and domestic appliance markets.  Flex-Tek generated annual sales of £354m for the year to 31 July 2018 and employs approximately 2,150 employees across 8 countries (US, Mexico, India, China, Malaysia, Philippines, France and Germany). Flex-Tek's key customers include Watsco, Boeing, Airbus, Pratt & Whitney, GE, Samsung, Trane and Carrier.

About United Flexible

United Flexible designs, develops, manufactures and provides support for performance-critical flexible and rigid engineered solutions for the transfer of fluids and gases in high temperature and high pressure environments. United Flexible focuses on the aerospace, defence and industrial end markets and employs approximately 700 employees across locations in the United States and Europe.  United Flexible's key customers include United Technologies Aerospace Systems, Pratt & Whitney, Lockheed Martin, Boeing, Ingersoll Rand and Stanadyne.

 

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