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Smiths Group to Sell Detection Unit to CVC for £2 Billion

Completion is targeted for the second half of 2026, with roughly £1.85bn in cash proceeds earmarked largely for shareholder returns.

Overview

  • The transaction requires regulatory approvals and is scheduled to close in the second half of 2026.
  • Smiths Detection, a maker of airport security scanners and other threat‑detection technologies, generated about 29% of group revenue last year.
  • The sale follows the £1.3bn disposal of the Interconnect business to Molex as Smiths narrows its focus to John Crane and Flex‑Tek.
  • Smiths plans to return a large portion of the proceeds to investors and is already executing a £1bn share buyback expected to run until July 2026.
  • The board opted for a sale rather than a demerger after agreeing terms equating to about 16 times operating profit.