Smiths Group has agreed to sell its Interconnect division to Molex, a Koch company, for £1.3bn. The deal values the business at 15.1 times its headline EBITDA of £86.1m for fiscal year 2025.
The sale follows Smiths’ strategic overhaul announced in January 2025, which aimed to sharpen its focus as an industrial engineering company amid activist investor pressure.
Smiths plans to return a substantial portion of the proceeds to shareholders. The company is already executing a £500m share buyback programme, due to finish by the end of the calendar year 2025.
The firms said the board will provide further details on the use of proceeds when it releases its first-quarter trading statement on 19 November 2025.
The market reaction was muted with Smiths Group shares rising just over 1% in mid-morning trade on Friday.
“This is an important step as we deliver on our commitment to focus Smiths and unlock the inherent value in our business,” said Roland Carter, Chief Executive of Smiths.
“Today’s announcement, and our recent results, show we are delivering on our strategy with pace and purpose and I am confident that we will continue to do so as we further focus our business as a high-performing industrial engineering company.
“We thank our Smiths Interconnect colleagues for their significant contribution to the Smiths Group over many years and wish them every success as they transition to their new owner, Molex, who is well placed to support their future growth.”