Smiths agrees sale of interconnect arm in £1.3bn deal

Engineering conglomerate Smiths Group has agreed the sale of its Smiths Interconnect business to US electronic components maker Molex Electronic in a deal worth £1.3 billion following investor pressure to break up the firm.

London-listed Smiths said the sale was a “notable step forward in the strategy to become a more focused industrial engineering company” and is expected to complete in the second half of next year.

It is also continuing with plans to hive off its Smiths Detection business, which makes X-ray machines for airports.

Roland Carter, chief executive of Smiths, said: “This is an important step as we deliver on our commitment to focus Smiths and unlock the inherent value in our business.

“Today’s announcement, and our recent results, show we are delivering on our strategy with pace and purpose.”

Smiths is among the UK’s biggest industrial firms, with four companies stretching across continents and industries and a history dating back more than 170 years.

It makes parts for the energy, aviation, aerospace, construction, automotive and semiconductor sectors among others, employing around 16,000 people across over 50 countries.

But it has come under pressure to sell off parts of its business by US investment group and shareholder Engine Capital, which claimed the blue-chip firm’s share price could be worth about 60% more if it sold off parts of the business.

Under the break-up plans, Smiths will instead focus on its John Crane subsidiary, which makes seals and parts for heavy industries, and its Flex-Tek business, which makes heating elements.

Smiths is also boosting investor returns through an ongoing £500 million share buyback programme, which is set to complete by the end of 2025.

The firm said: “Smiths remains committed to returning a large portion of disposal proceeds from the sale of Smiths Interconnect to shareholders.”

Smiths Interconnect business, which makes broadband connection and antenna parts, had underlying earnings of £86.1 million in 2024-25.