Smiths Group buys US manufacturer HCP in $82 million deal
- The engineering giant said it bought HCP for $82 million (approximately £65 million).
- The London-based company said HCP will be integrated into its Flex-Tek division.
Smiths Group has acquired Heating and Cooling Products (HCP), a US manufacturer of heating, ventilation and air conditioning solutions.
The engineering firm says it acquired HCP for $82m (£65m) in cash and debt free from a private seller for less than seven times this year’s earnings before interest, tax, depreciation and amortization (EBITDA) figure. .
The London-based company also revealed that HCP will be integrated into its Flex-Tek division.
The engineering giant revealed that it had acquired HCP for $82 million (approximately £65 million).
The company also said it will further expand the group’s presence in North America, allowing it to “serve customers with an even broader range of products, including HCP’s patented radial and axial sealing duct technology that improves energy efficiency”.
Smiths Group Shares they were up 0.86 percent at £16.36 at lunchtime on Wednesday.
Paul Keel, Chief Executive Officer of Smiths Group, said: “Smiths has posted eight consecutive quarters of growth, and the addition of HCP allows us to further build on this momentum by adding synergistic capabilities, through a cumulative transaction, in a market we are familiar with.” . Well.
“We welcome our new HCP colleagues to Smiths.”
In March, Smiths Group improved its full-year guidance following record organic revenue growth in the first half on the back of favorable currency swings and demand for construction products.
The group anticipates organic revenue to rise 8 percent or more this fiscal year, compared with a previous forecast made in January of at least 7 percent growth, which itself was an increase from a previous outlook. .
Total sales rose by £305m to just £1.5bn for the six months to January, up around a quarter year-on-year, with beneficial currency movements accounting for more than 40 per cent of the growth.
