Smiths Group plc to acquire United Flexible, Inc.

Posted: 4th October 2018 09:08

Smiths Group plc today announces that it has entered into an agreement to acquire United Flexible, Inc, a provider of flexible and rigid engineered solutions for the transfer of fluids and gases in performance-critical environments, from Arlington Capital Partners for an enterprise value of $345m.

United Flexible will be integrated into the Group's Flex-Tek division.  The acquisition strengthens Flex-Tek's positions in aerospace and industrial end markets globally. United Flexible already supports important aerospace platforms, including the A320neo and PW1000G and F135 engines.  It has 4 operations in the US and 3 in Europe, which will enhance Flex-Tek's geographic footprint.

In the 12 months to 31 December 2018, United Flexible is expected to generate sales of $157m and adjusted EBITDA of $32m.

The acquisition consideration will be payable from existing cash and bank facilities. Completion of the acquisition is expected to take place in the second half of FY2019 and is conditional upon regulatory clearances in the US, as well as other customary closing conditions.

Andy Reynolds Smith, Chief Executive of Smiths Group, said:

"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.

United Flexible is a high-quality growth business with complementary positions on a number of growing aerospace platforms and in industrial markets. I am delighted to welcome the United Flexible team to Smiths Group."

Gleacher Shacklock LLP acted as financial adviser to Smiths Group on the transaction.

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