Smiths Group (LON:SMIN) has inked a deal to buy US engineering solutions business United Flexible, the blue-chip company has said. The move comes after the FTSE 100 engineering group recently scrapped talks to merge its medical business with ICU.
Smiths’ share price has been little changed in London this morning, having given up 0.20 percent to 1,498.00p as of 10:19 BST. The stock is outperforming the broader market with the benchmark FTSE 100 index currently standing 0.85 percent lower at 7,446.49 points. The group’s shares have given up a little over six percent of their value over the past year, as compared with about a 0.4-percent dip in the Footsie.
Smiths buys United Flexible
Smiths Group announced in a statement this morning that it had entered into an agreement to acquire engineering solutions group United Flexible, from Arlington Capital Partners for an enterprise value of $345 million. The FTSE 100 group said that it will integrate United Flexible into its Flex-Tek division, to strengthen its positions in aerospace and industrial end markets globally.
“This acquisition is consistent with our strategy of high-grading the portfolio for growth, through organic and inorganic investment as well as active portfolio management,” Smiths chief executive Andy Reynolds Smith commented in the statement.
United Solutions, which provides flexible and rigid engineered solutions for the transfer of fluids and gases in performance-critical environments, is expected to generate sales of $157 million and adjusted EBITDA of $32 million in the 12 months to December 31.
Analysts on FTSE 100 group
The 14 analysts offering 12-month price targets for Smiths for the Financial Times have a median target of 1,682.50p on the shares, with a high estimate of 1,900.00p and a low estimate of 1,600.00p. As of October 3, the consensus forecast amongst 18 polled investment analysts covering the blue-chip engineering group has it that the company will outperform the market.