Smiths Group has entered into a definitive agreement to acquire 100% of the share capital of Morpho Detection from Safran S.A. The acquisition is a pivotal strategic move designed to consolidate and strengthen the Group's position within the global threat detection and security solutions market. By merging Morpho Detection with its existing Detection division, Smiths Group intends to create a best-in-class provider of mission-critical security technology for air transportation, borders, and critical infrastructure. The combination leverages highly complementary product portfolios, creating a broad offering of leading threat detection technologies. Furthermore, the transaction allows Smiths Group to significantly scale its recurring aftermarket services and software engineering capabilities. This integration is expected to enhance the Group’s ability to respond to evolving global threat environments while driving long-term growth through technical leadership.

MORPHO DETECTION, which reported an EBITDA margin of LOGIN in 2015, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN discount to the average currently observed in the Industry & Manufacturing sector (10.9x).

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