Smiths Group has entered into an agreement to acquire United Flexible, a provider of flexible and rigid engineered solutions for the transfer of fluids and gases in performance-critical environments, from Arlington Capital Partners for an enterprise value of US$345 million.
United Flexible will be integrated into the Group's Flex-Tek division. The acquisition strengthens Flex-Tek's positions in aerospace and industrial end markets globally. United Flexible already supports important aerospace platforms, including the A320neo and PW1000G and F135 engines. It has 4 operations in the US and 3 in Europe, which will enhance Flex-Tek's geographic footprint.
In the 12 months to 31 December 2018, United Flexible is expected to generate sales of US$157 million and adjusted EBITDA of US$32 million.
The acquisition consideration will be payable from existing cash and bank facilities. Completion of the acquisition is expected to take place in the second half of FY2019 and is conditional upon regulatory clearances in the US, as well as other customary closing conditions.
