Smiths Industries acquires Invensys' aerospace division for $175 million

Citation

(2000), "Smiths Industries acquires Invensys' aerospace division for $175 million", Aircraft Engineering and Aerospace Technology, Vol. 72 No. 2. https://doi.org/10.1108/aeat.2000.12772bab.041

Smiths Industries acquires Invensys' aerospace division for $175 million

Smiths Industries acquires Invensys' aerospace division for $175 million

Keywords: Smiths Industries, Invensys, Mergers and acquisitions

In a move to extend its range of aerospace electronics into a closely-related area of systems and components for aircraft, Smiths Industries plc has agreed to acquire the aerospace division of Invensys plc for a total of $175 million (£109 million). The business, based in the USA, specialises in products for electrical power management and aircraft utilities, in which Smiths Industries is already a technology leader. Invensys is making the disposal as part of its strategy to refocus on industrial automation and control.

The acquisition of this complementary activity will strengthen Smiths Industries' position as a supplier of highly-integrated systems for both civil and defence aerospace applications. Keith Butler-Wheelhouse, Chief Executive commented:

This was an opportunity too good to miss, and Allen Yurko and I have dealt directly on a willing seller/willing buyer basis. The business has good synergies with our existing aerospace operations. It is exactly the type of acquisition we are looking for to broaden our capability as a first-tier supplier to the major aircraft manufacturers.

The business being acquired employs 850 people at four main locations in New York, Illinois, Ohio and California. Sales and profits (before interest and tax) recorded by the Invensys aerospace division, in the 12 months ended 30 September 1999, were $120 million and $19 million respectively.