Smiths Group advances strategic focus with £1.3 billion interconnect sale

Smiths Group PLC has agreed to sell its Smiths Interconnect division to Molex, a subsidiary of Koch Industries, for an enterprise value of 1.3 billion British Pounds.

The sale is a key part of the British engineering company's strategy to streamline its operations and concentrate on its industrial engineering business, according to a company statement.

The all-cash deal values the unit at 15.1 times its fiscal 2025 headline earnings before interest, taxes, depreciation, and amortization.

"This is an important step as we deliver on our commitment to focus Smiths and unlock the inherent value in our business," said Chief Executive Roland Carter.

The transaction is expected to close in the second half of fiscal year 2026, pending regulatory approvals.

Smiths said it intends to return a large portion of the proceeds to shareholders, in addition to an ongoing 500 million British Pound share buyback program.

The company also stated it is continuing to move forward with a parallel sale and demerger process for its Smiths Detection security screening business.