21st Apr 2016 06:35
LONDON (Alliance News) - Diversified engineer Smiths Group PLC on Thursday said it has struck a USD710.0 million deal to acquire the US's Morpho Detection from French engineering group Safran SA.
Morpho is a California-based detection and security technology company, Smiths said, and will be merged into the UK-listed company's existing Smiths Detection business.
Morpho makes and supplies detection systems and services to airports, border control services and other high-risk critical infrastructure sites, such as nuclear power plants, military installations and government buildings.
The company delivered USD320.0 million in revenue in 2015, Smiths said, with an operating margin of 18% and with more than half its revenue derived from aftermarket services.
"Morpho Detection is a high-quality business with a strong management team, and I am convinced that this combination provides a compelling competitive platform for product, service and technology leadership," said Andy Reynolds Smith, Smiths Group's chief executive.
"The acquisition is consistent with our approach to increasingly focus investment in highly attractive technology-led areas, and will create significant value for shareholders and position us for long-term growth," he added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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