Smiths Group plc has agreed to sell 100% of Smiths Interconnect to Molex Electronic Technologies Holdings. The transaction, expected to close in the second half of fiscal year 2026, is a key pillar of the strategic plan announced in January 2025 to refocus Smiths Group as a high-performance industrial engineering company. The strategic rationale for the deal is twofold: for Smiths Group, it unlocks significant inherent value and provides cash to enhance shareholder returns via buybacks and dividends. For Molex, the acquisition significantly strengthens its presence in the high-reliability defense, space, and medical markets by integrating Smiths' specialized interconnect technologies. The perimeter of the sale excludes the US sub-systems business unit, which was separately divested in October 2025. This deal was announced simultaneously with the ongoing sales process for Smiths Detection, marking a definitive shift toward a more streamlined group structure focused on flow management and thermal solutions.

SMITHS INTERCONNECT, 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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