Smiths Group plc (LSE:SMIN) said it has agreed the sales of Smiths Interconnect and Smiths Detection at a combined enterprise value of £3.3bn, with Smiths Interconnect approaching completion and Smiths Detection on track to close in the second half of CY2026.
The deals were struck at attractive multiples: Smiths Interconnect to Molex for £1.3bn (15.1x FY2025 headline EBITDA) and Smiths Detection to CVC for £2.0bn (16.3x FY2025 headline operating profit and 12.5x headline EBITDA), the filing said.
The group reiterated disciplined capital return plans: a CY2026 £1bn buyback is already underway (£180m executed in H1 and a further £127m since), and "we intend to return £1.5bn of the cash proceeds" from the Detection sale via a combination of a structured return (tender offer or special dividend) and on‑market buybacks to run through calendar 2027, the company said.
The board raised the interim dividend by 5.4% to 15.00p; key dividend dates are interim ex‑dividend 2 April 2026, record date 7 April 2026 and payment date 13 May 2026, the filing shows. Roland Carter, Chief Executive Officer, said: "Following the completion of the disposals, Smiths will be a focused, premium industrial engineering company."
Operationally the group reported +4.0% organic revenue growth and a headline operating profit margin up 50 basis points to 17.2% in the first half, with John Crane showing mid‑single digit Q2 growth and Flex‑Tek strong in aerospace but weighed by US construction weakness. The company updated FY2026 guidance to exclude Smiths Detection and now expects organic revenue growth of 3–4% and an operating profit margin of around 20%, progressing towards a 21–23% target range. The group also agreed to buy DRC Heat Transfer for £164m to expand Flex‑Tek's thermal solutions offering, the filing added.
The recap
• Combined enterprise value for Smiths Interconnect and Smiths Detection: £3.3bn. • Additional £1.5bn to be returned to shareholders post‑sale, with a CY2026 £1bn buyback already underway. • Interim dividend up 5.4% to 15.00p; ex‑dividend date 2 April 2026, payment 13 May 2026.
