Smiths Group (LON:SMIN) has agreed to acquire engineering solutions business United Flexible from Arlington Capital Partners for US$345mln.
The FTSE 100 group said United Flexible would be integrated into its Flex-Tek division and would strengthen Flex-Tek's positions in aerospace and industrial end markets globally.
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United Flexible already supports important aerospace platforms, including the A320neo and PW1000G and F135 engines. It has four operations in the US and three in Europe, which will enhance Flex-Tek's geographic footprint, Smiths added.
"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. Flex-Tek has a track record of consistent delivery, underpinned by strong market positions and operational performance. The acquisition of United Flexible will strengthen our position in aerospace and industrial end markets globally,” CEO Andy Reynolds Smith said in a statement.
“United Flexible is a high-quality growth business with complementary positions on a number of growing aerospace platforms and in industrial markets,” he added.
The engineering company said that the acquisition would be funded by using its existing cash and bank facilities. Completion of the acquisition is expected to take place in the second half of 2019 and is conditional upon regulatory clearances in the US, as well as other customary closing conditions, Smiths said.
In the 12 months to 31 December 2018, United Flexible, which provides flexible and rigid engineered solutions for the transfer of fluids and gases in performance-critical environments, is expected to generate sales of US$157mln and adjusted EBITDA of US$32mln.