Smiths Group completes disposal of Power business

26th Jan 2017 11:16

(ShareCast News) - Engineer Smiths Group has completed the sale of Smiths Interconnect's Power business to private investment firm Dunes Point Capital for an enterprise value of £162m.This disposal is part of an ongoing corporate programme to focus the company's portfolio on market-leading scalable positions in its chosen markets and the proceeds will be reinvested in "attractive growth opportunities".The Power business provides custom power distribution and monitoring solutions that ensure power quality in sensitive environments such as data centres, telecoms, medical and defence. For the year to the end of July 2016, it reported total revenues of £88m, representing 20% of Smiths Interconnect revenue, and operating profit of £11m.Chief executive Andy Reynolds Smith said: "We continue to make progress in focusing our portfolio to position Smiths Group for long-term growth markets where leading positions can be developed that have innovation at their heart. This disposal is part of a restructuring plan for Smiths Interconnect to provide a greater focus on markets and customers where our advanced connector and microwave technologies bring most value and potential."Since starting our programme, we have disposed of £150m of revenue and released over £330m of capital for reinvestment in opportunities that offer the best levels of growth and value creation for the company around the world."At 1124 GMT, the shares were up 1.2% to 1,510p.