REG - Smiths Group PLC - Acquisition of DRC Heat Transfer

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RNS Number : 0203V  Smiths Group PLC  03 March 2026

News Release

3 March 2026

 

 

Smiths acquires DRC Heat Transfer

 

Smiths, a leading industrial engineering company, announces today that it has
agreed to acquire DRC Heat Transfer (DRC) for a purchase price of £164m
representing a multiple of 10x adjusted EBITDA for the calendar year 2025.

 

DRC is a US-based designer and manufacturer of custom heat transfer and
cooling solutions, primarily for the power generators used in data centres.
With more than 50 years of engineering heritage, DRC supports a broad range of
power generation and various other applications across industrial, transit,
and energy markets. DRC has a clear strategic focus on the reliability and
scalability demands of data centres. Its mission-critical solutions safeguard
power security and ensure uninterrupted operations for data centres and other
essential industries. It generated £73m in revenue in the calendar year 2025.

 

DRC will be integrated into Flex-Tek's industrial heat business and is
consistent with the strategy of building into high growth adjacencies. DRC
will enable Flex-Tek to serve a wider customer group in fast growing end
markets with DRC  products and solutions that are additive to Flex-Tek's
existing portfolio.

 

DRC's technology and engineering-led customer intimacy extends Flex-Tek Heat's
offering into cooling applications and adds broader thermal solutions
capabilities. The acquisition will also strengthen Flex-Tek's presence in the
power generation market where growth is underpinned by significant structural
growth trends, in particular for data centre back-up power, and other
mission-critical applications.

 

Roland Carter, CEO of Smiths Group, said: "This acquisition marks further
progress on our strategy as we scale Flex-Tek's industrial heat business into
higher growth end markets. With strong exposure to the growing data centre
market and with wider power generation capabilities, this acquisition not only
broadens our capabilities for existing customers but increases the addressable
market for Flex-Tek into fast growing adjacencies.

 

"We are excited to welcome the team to Smiths and to build on their expertise
to deliver even greater value for our customers."

 

DRC is located near Chicago, United States and has 250+ employees. Completion
of the transaction is expected to take place in the second half of fiscal year
2026 and is subject to customary approvals.

 

ENDS

 

 

 IR contacts                                                      Media contacts

 Siobhán Andrews, Smiths Group                                    Tom Steiner, Smiths Group

+44 (0) 7920 230093
+44 (0)7787415891
 siobhan.andrews@smiths.com (mailto:siobhan.andrews@smiths.com)   tom.steiner@Smiths.com (mailto:tom.steiner@smiths.com)

 Ana Pita da Veiga, Smiths Group                                  Alex Le May, FTI Consulting

+44 (0) 2037271340
 +44 (0)7386 689442                                               Smiths@fticonsulting.com (mailto:smiths@fticonsulting.com)

 ana.pitadaveiga@Smiths.com

About Smiths Group

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
energy, industrials, 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. Listed on the London Stock Exchange, we are
present in over 50 countries worldwide. For more, visit www.smiths.com
(http://www.smiths.com) .

Legal Entity Identifier (LEI): 213800MJL6IPZS3ASA11

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