Smiths Group Acquires Two North American Companies
USA: Smiths Group plc, has announced its acquisition of two North American firms, Modular Metal Fabricators, Inc. and Wattco, Inc., for a combined total of up to £110 million (USD 147.08 million). These acquisitions will be integrated into the Heating, Ventilation & Air Conditioning (HVAC) and electrical heating solutions platforms within Smiths Group’s Flex-Tek division. Modular Metal Fabricators, a U.S.-based manufacturer of metal and flexible ducting, is set to complete its acquisition on October 1, 2024. This will enhance Smiths Group's HVAC presence in the western United States and expand its product offerings to include Modular Metal's sealed flexible duct solutions. Meanwhile, Wattco, a Canadian electric heating solutions provider, will enable Smiths Group to expand into medium temperature immersion and circulation heating, complementing its existing open coil electrical heating business. The companies were acquired for approximately 8 times their trailing 12-month EBITDA and are expected to enhance Flex-Tek’s operating margin.
Source: Smiths Group