Smiths Group plc (LSE:SMIN) agreed to acquire DRC Heat Transfer for approximately £160 million on March 3, 2026. A cash consideration of £164 million will be paid by Smiths Group plc. As part of consideration, £164 million is paid towards common equity of DRC Heat Transfer.
The transaction reflects TEV/EBITDA multiple of 10x. For the period ending December 31, 2025, DRC Heat Transfer reported total revenue of £73 million.
The transaction is subject to customary approvals. The expected completion of the transaction is in the second half of fiscal year 2026.
Smiths Group plc is an industrial group organized around 3 product families:
- industrial equipment (38.3% of net sales; John Crane): mechanical linings, auxiliary sealing systems for pumps and compressors, bearings, power transmission couplings, etc.;
- detection equipment (33%; Smiths Detection): for detecting and identifying explosives, weapons, chemical and biological agents, etc.;
- tubular and thermal systems (28.7%; Flex-Tek).
Net sales (excluding discontinued operations) are distributed geographically as follows: the United Kingdom (3.7%), Europe (14.5%), America (55.4%), Asia/Pacific (14.9%) and other (11.5%).
In 2025, the Smiths Interconnect business was classified as a discontinued operation.
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