Smiths Group (LSE:SMIN) PLC has announced the acquisition of US-based manufacturer Heating & Cooling Products.
Adding the heating, ventilation and air conditioning (HVAC) manufacturer will boost Smiths’ presence in the North American market, the company said in a statement.
FTSE 100-listed Smiths bought the US firm for US$82 million (£64 million) on a cash and debt-free basis from its previous private owners.
“Smiths has now posted eight straight quarters of growth,” chief executive Paul Keel commented.
“The addition […] allows us to further build on this momentum by adding synergistic capabilities, through an accretive transaction, in a market we know well.”
It will also “enable Smiths to serve customers with an even broader product range”, the company added, including Heating & Cooling Products’ patented goods.
Heating & Cooling Products penned US$69 million in revenue in the year to July, according to Smiths, with the transaction having cost less than seven times its estimated pre-tax earnings.