Smiths Group acquires Duc-Pac Corporation
Smiths Group plc, a leading industrial technology company, announces today that it has acquired Duc-Pac Corporation ('Duc-Pac'), a US-based metal duct manufacturer for heating, ventilation & air conditioning (HVAC) applications, for a purchase price of $40.5m (£32m[1]). The company will be integrated into the construction segment of Smiths Group's Flex-Tek business .
This acquisition is part of Smiths Group's ongoing strategy to build a nationwide, integrated offer in its North American construction segment. Duc-Pac expands Smiths Group's geographical metal duct coverage into north-east USA through its established brand, deep customer relationships and strong operational business model .
The acquisition is compelling as it will enable the business to grow by increasing its market presence and creating cross-selling opportunities to the combined customer base.
Roland Carter, CEO of Smiths Group, said: " We see an exciting future in our Flex-Tek business as we continue to invest for growth. We are building a strong track record of successfully integrating bolt on acquisitions to augment our strong organic growth.
" The acquisition of Duc-Pac enhances our North American construction business, with many customer synergies and growth opportunities. We offer a very warm Smiths welcome to the Duc-Pac team!"
As with Smiths Group's prior construction bolt-on acquisitions, the Duc-Pac acquisition will be accretive to Group margin. It was acquired for a 7.2x trailing 12 months reported EBITDA.
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About Smiths Group
For over 170 years, Smiths has been pioneering progress by engineering for a better future. We serve millions of people every year, to help create a safer, more efficient and productive, and better-connected world across four global markets: energy, security & defence, space & aerospace and general industrial. Listed on the London Stock Exchange, Smiths employs c.15,000 colleagues in over 50 countries. For more information visit www.smiths.com .
[1] At GBP to USD exchange rate of 1.26
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