REG - Smiths Group PLC - SALE OF SMITHS INTERCONNECT

SmithsAnnouncement

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RNS Number : 7475D  Smiths Group PLC  17 October 2025

16 October 2025

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

SMITHS GROUP PLC

SALE OF SMITHS INTERCONNECT

Smiths Group plc ("Smiths") announces that it has entered into an agreement
for the sale of Smiths Interconnect to Molex Electronic Technologies Holdings,
LLC ("Molex", a Koch company) (the "Transaction"). The Transaction values
Smiths Interconnect at an enterprise value of £1.3bn, representing 15.1x
headline EBITDA of £86.1m(1) for the fiscal year 2025. Smiths will receive
cash consideration for the Transaction which is subject to customary
adjustments for working capital, cash and debt.

This announcement demonstrates clear progress against the strategic actions
announced on 31 January 2025, designed to maximise value creation, unlock
value in the portfolio, and enhance returns to shareholders. The sale of
Smiths Interconnect is a notable step forward in the strategy to become a more
focused industrial engineering company. Completion of the Transaction is
expected to take place in the second half of fiscal year 2026.

As also announced in January, Smiths is executing against the delivery of
enhanced returns to shareholders through its ongoing £500m buyback which is
expected to complete by the end of calendar year 2025. Smiths remains
committed to returning a large portion of disposal proceeds from the sale of
Smiths Interconnect to shareholders and intends to maintain an investment
grade credit rating with the desire to have an efficient balance sheet.  The
Board of Smiths will provide an update on the use of proceeds in the Q1 FY2026
Trading Statement scheduled for release on 19 November 2025.

Smiths continues to progress with both the sale and demerger processes in
parallel for Smiths Detection, as previously stated.

Roland Carter, Chief Executive of Smiths, said: "This is an important step as
we deliver on our commitment to focus Smiths and unlock the inherent value in
our business. Today's announcement, and our recent results, show we are
delivering on our strategy with pace and purpose and I am confident that we
will continue to do so as we further focus our business as a high-performing
industrial engineering company.

"We thank our Smiths Interconnect colleagues for their significant
contribution to the Smiths Group over many years and wish them every success
as they transition to their new owner, Molex, who is well placed to support
their future growth."

Under French employment laws, prior to making any decision to enter into the
Transaction (including by way of entry into any binding share purchase
agreement), Smiths is required to carry out an information and consultation
process with its French works council (the "French Works Council"). It is
intended that the consultation process regarding the Transaction will begin
following this announcement. Whilst Smiths will ensure the views of the French
Works Council are properly considered, the French Works Council opinion on the
Transaction is consultative and not binding on Smiths or Molex. Following
completion of the consultation with the French Works Council, the agreement
that Smiths has entered into gives it the unilateral and unconditional right
to require Molex to enter into a binding share purchase agreement to complete
the Transaction, which is subject to the satisfaction of customary conditions
and regulatory approvals.

(1) Based on headline FY2025 EBITDA, which excludes the contribution from the
US sub-systems business unit of Smiths Interconnect, which was reported as
agreed for sale in Smiths full year 2025 results, and which completed in
October 2025.

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

 Company Secretary

 Matthew Whyte

 +44 (0) 7775 982879

 matthew.whyte@Smiths.com (mailto:matthew.whyte@smiths.com)

 

 

 Goldman Sachs International (Joint Financial Adviser)      Tel: +44 20 7774 1000
 Mark Sorrell / Charlie Lytle / Nick Harper/ Harry Webster

 J.P. Morgan Securities plc (Joint Financial Adviser)       Tel: +44 20 7742 4000
 Richard Perelman / Alex Bruce / Saumitra Gorani

 

White & Case LLP is acting as legal adviser to Smiths in connection with
the Transaction.

About Smiths Group

For over 170 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 and construction.

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
employ c.16,000 colleagues in over 50 countries. For more, visit
www.smiths.com (http://www.smiths.com) .

This announcement contains inside information for the purposes of article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

The person responsible for arranging the release of this announcement on
behalf of Smiths is Matthew Whyte, Company Secretary

Legal Entity Identifier (LEI): 213800MJL6IPZS3ASA11

Important information relating to the joint advisers

Goldman Sachs International ("Goldman Sachs"), which is authorised in the
United Kingdom by the Prudential Regulation Authority ("PRA") and regulated in
the United Kingdom by the Financial Conduct Authority ("FCA") and the PRA, is
acting as joint financial adviser exclusively to Smiths and no one else in
connection with the matters described in this announcement and will not be
responsible to anyone other than Smiths for providing the protections afforded
to clients of Goldman Sachs nor for giving advice in connection with the
matters set out in this announcement or any transaction, arrangement or other
matter referred to in this announcement.

J.P. Morgan Securities plc, which conducts its UK investment banking business
as J.P. Morgan Cazenove ("J.P. Morgan Cazenove"), is authorised in the United
Kingdom by the PRA and regulated by the FCA and PRA. J.P. Morgan Cazenove is
acting as joint financial adviser exclusively to Smiths and no one else in
connection with the matters set out in this announcement and will not regard
any other person as its client in relation to the matters in this announcement
and will not be responsible to anyone other than Smiths for providing the
protections afforded to clients of J.P. Morgan Cazenove or its affiliates, nor
for providing advice in relation to any matter referred to herein.

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