At what enterprise value was DRC HEAT TRANSFER acquired in 2026?

During the acquisition of DRC HEAT TRANSFER by SMITHS GROUP in 2026, the company was valued at an estimated revenue multiple of below 5x. The transaction's Enterprise Value is estimated to be in the range of 100M - 350M GBP. By registering for free, you get access to complete and exact transaction details including enterprise value, revenue, and EBITDA. Additionally, our database shows that the Industry & Manufacturing industry currently tracks an average EBITDA multiple of 11.1x, providing a valuable benchmark for this transaction.

What was the EV/EBITDA of DRC HEAT TRANSFER when it was acquired by SMITHS GROUP?

The estimated EV/EBITDA multiple for DRC HEAT TRANSFER is in the range of 10x - 18x. For comparison, the Industry & Manufacturing sector currently shows an average EBITDA multiple of 11.1x. Join our community for free to access full valuation data and industry trends.

When was DRC HEAT TRANSFER acquired by SMITHS GROUP?

DRC HEAT TRANSFER was acquired by SMITHS GROUP in 2026.

What was the revenue of DRC HEAT TRANSFER at the time of the deal?

The revenue of DRC HEAT TRANSFER at the time of the deal is estimated to be in the range of 50M - 100M GBP. Register for free to access the full transaction report and exact valuation multiples.

What was the EBITDA of DRC HEAT TRANSFER during the acquisition?

DRC HEAT TRANSFER's EBITDA is estimated to be in the range of 5M - 25M GBP. Join our community for free to access complete and exact deal data.

What is Enterprise Value (EV)?

Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization. EV includes in its calculation the market capitalization of a company but also short-term and long-term debt as well as any cash on the company's balance sheet.

What is the EV/EBITDA multiple and why is it used?

The EV/EBITDA multiple is a financial ratio that compares a company's Enterprise Value (EV) to its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). It is widely used in M&A and valuation because it allows for comparisons between companies with different capital structures and provides a clear view of operational profitability.

How is the data for the DRC HEAT TRANSFER acquisition sourced and is it reliable?

Mynth data is contributed by a professional community of M&A and Private Equity experts. Each transaction, including the DRC HEAT TRANSFER deal, is systematically cross-verified by our team using private deal documents and official sources. You can also find the official press release for this transaction here: https://www.smiths.com/news-and-insights/news/2026/smiths-acquires-drc-heat-transfer

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Home Database Industry & ManufacturingDRC HEAT TRANSFER

03/2026

DRC HEAT TRANSFER acquired by SMITHS GROUP

UNITED STATES Industrial Equipment / Special Machinery / Boilers & Thermal Solutions EV 100M - 350M GBP

Context

Smiths Group plc has agreed to acquire 100% of DRC Heat Transfer to expend Smiths' cooling and thermal management capabilities within the fast-growing data center market. The transaction is expected to close in the second half of fiscal year 2026, subject to customary regulatory approvals. Upon completion, DRC will be integrated into the industrial heat business of Smiths’ Flex-Tek division. While Flex-Tek already maintains a strong position in industrial heating, DRC’s expertise in cooling applications for back-up power generators provides a highly additive technological bridge. This move allows Smiths to capitalize on the structural growth of data centers, driven by AI and cloud computing demands, which require increasingly sophisticated power security solutions. The acquisition also strengthens Flex-Tek’s geographic and operational footprint in the United States, utilizing DRC’s Chicago-based manufacturing hub and specialized workforce to serve a wider global customer group.

DRC HEAT TRANSFER, which reported an EBITDA margin of LOGIN in 2025, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN to the average currently observed in the Industry & Manufacturing sector (11.1x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.

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Target

DRC Heat Transfer (DRC) is a premier designer and manufacturer of custom heat transfer and cooling solutions, specializing in mission-critical applications for data center power generation. With over 50 years of engineering heritage, the organization provides thermal management systems that safeguard power security and ensure uninterrupted operations for essential industries, including energy, transit, and industrial markets. The entity’s product portfolio is specifically engineered to meet the reliability and scalability demands of the rapidly growing data center sector, particularly for back-up power cooling. Operating with a workforce of over 250 employees, the firm maintains a business model built on engineering-led customer intimacy and high-performance technology, positioning it as a key supplier in the power generation value chain.

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REFERENCES

Valuation range: EV 100M - 350M GBP

Revenue range: 50M - 100M GBP

EBITDA range: 5M - 25M GBP

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of DRC HEAT TRANSFER by SMITHS GROUP are reserved for mynth community members. Register for free to unlock full data.

Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).

Press release: view release

Acquirer: smiths group