Smiths Group plc has agreed to sell Smiths Detection to CVC Capital Partners for £2.0 billion, enabling a strategic refocus on its core industrial engineering operations.

Information on the Target

Smiths Group plc has announced its intention to sell Smiths Detection to funds managed by CVC Capital Partners for an enterprise value of £2.0 billion. This valuation corresponds to a multiple of 16.3 times headline operating profit, which is projected to reach £122 million, and 12.5 times headline EBITDA of £160 million for the financial year concluding on July 31, 2025. Upon customary adjustments, Smiths anticipates receiving net cash proceeds of approximately £1.85 billion from this transaction.

The sale of Smiths Detection aligns with Smiths Group's strategy to transition into a more focused industrial engineering enterprise. Combined with the recent sale of Smiths Interconnect, this move signifies a substantial shift, positioning Smiths for greater operational efficiency and financial performance.

Industry Overview in the Target’s Specific Country

In the United Kingdom, the industrial engineering sector plays a critical role in driving economic performance, particularly through innovation in areas such as energy management and thermal solutions. The