Smiths Group plc has entered into a definitive agreement to sell 100% of Smiths Detection to CVC Capital Partners, making the final major step in Smiths Group’s strategic portfolio reorganization. The strategic rationale for the deal is to reposition Smiths Group as a focused, high-performance industrial engineering company specializing in flow management (John Crane) and thermal solutions (Flex-Tek). For Smiths Group, the cash sale was preferred over a demerger as it provided immediate value realization for shareholders and capital for a £1 billion buyback program. For CVC, the acquisition represents a rare opportunity to acquire a global leader in the security technology space with high barriers to entry and an attractive financial profile, including a 16.3x operating profit multiple. The combined divestments of Detection and Interconnect represent a total enterprise value of £3.3 billion, effectively unlocking the group's "sum-of-the-parts" value.

SMITHS DETECTION, which reported an EBITDA margin of LOGIN in 2025, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN premium to the 10.3x average currently observed in the Industry & Manufacturing sector.

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