Smiths Group completes DRC Heat Transfer acquisition
Smiths Group PLC on Thursday said it has completed the acquisition of US provider of heating and cooling systems for data centres DRC Heat Transfer.
The London-based engineering company said that DRC will be integrated into subsidiary Flex-Tek’s industrial heat business. The integration, Smiths said, is consistent with its strategy of building into high growth adjacencies and enable Flex-Tek to serve a wider customer group with additions to its product portfolio.
Chicago-based DRC was founded in 1970 and had more than 250 employees.
Smiths Group said when it announced the deal last month that the £164 million purchase price represents a 10-times multiple of DRC’s adjusted earnings in 2025, when DRC generated £73 million in revenue.
‘The acquisition will strengthen Flex-Tek’s presence in the power generation market where growth is underpinned by significant structural growth trends, such as data centre back-up power, and other mission-critical applications’, Smiths Group said.
Chief Executive Officer Roland Carter added: ‘The acquisition of DRC further demonstrates our focus on value creative growth and delivering on our strategy at pace and with discipline. I am delighted to welcome the DRC team to Smiths as we continue to demonstrate the delivery of sustainable value across our business’.
Completion of the acquisition was originally expected in the second half of financial 2026, Smiths Group said. The company’s financial year ends on July 31.
The purchase follows the company sale of its Smiths Detection division to CVC Capital Partners PLC at an enterprise value of £2.0 billion in February.
It also follows the £1.3 million sale of Smiths Interconnect to Molex Electronic Technologies Holdings LLC, which closed on Wednesday.
Smiths Group shares were down 2.4% to 2,326.00 pence on Thursday morning in London, giving the FTSE 100 constituent a market capitalisation of £7.15 billion. The stock is up 20% over the past 12 months.
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