Smiths Group to sell Detection unit to CVC in PS2.0 billion deal

Smiths Group PLC on Friday said it has signed a binding agreement to sell its Smiths Detection division to CVC Capital Partners PLC in a deal valuing the business at £2.0 billion.

The sale values Smiths Detection at an enterprise value of £2.0 billion, equivalent to 16.3 times headline operating profit of £122 million and 12.5 times headline earnings before interest, tax, depreciation and amortisation of £160 million for the year ended July 31, 2025.

At completion, the London-based engineering company expects to receive approximately £1.85 billion in net cash proceeds, after transaction expenses and separation costs, subject to customary adjustments under the locked-box mechanism in the share purchase agreement.

Smiths Detection is a provider of threat detection and security screening technologies used in aviation, ports and borders, defence and urban security.

The agreement follows Smiths’ announcement on December 3 that it had entered into a put option deed with CVC, as part of Smiths restructuring plans announced in January 2025. After completing an information and consultation process with the works council of Smiths Detection France SAS, Smiths exercised the put option and has now formally entered into the binding share purchase agreement.

The transaction remains subject to customary regulatory approvals, with completion is expected in the second half of calendar year 2026.

Shares in Smiths Group were up 1.0% at 2,682.00 pence in London on Friday morning. CVC Capital Partners shares were up 2.0% in Amsterdam at €12.70.

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