Smith buys IDI for $185m

22nd Mar 2010 07:58

Smiths Interconnect, a division of technology firm Smiths Group, announced the $185m all-cash purchase of Kansas City-based Interconnect Devices Inc. (IDI) from private equity firm Milestone Partners.The deal is subject to regulatory approval in the US and is expected to complete in early April. The acquisition, expected to be immediately earnings accretive, will be funded primarily from internal resources, reflecting strong cash generation in the first half of the year supported by the receipt of proceeds from surplus properties. Smiths Chief Executive Philip Bowman said: "Smiths Interconnect operates in a fragmented market with many opportunities for consolidation. IDI is its fifth acquisition in two years and meets our strategic criteria of expanding the product range and extending geographic reach." "Three of these companies have a strong presence in the fast-growing Asian market and have already expanded our microwave and protection technologies. This transaction also provides a significant Chinese base for our other technology area, connectors."