Acquisition

16th Feb 2005 07:00

Smiths Group PLC16 February 2005 News Release London, 16 February 2005 Smiths strengthens detection activities with acquisition of Farran Technology Smiths Group plc announced today that it is expanding the range of technologiesoffered by its rapidly growing Detection division, with the acquisition ofFarran Technology Limited. Farran, based in the Republic of Ireland, isdeveloping millimetre wave technologies for the detection of hidden weapons andexplosives and for other applications. Using the electromagnetic radiation naturally emitted by all objects, Farran isapplying its millimetre wave technology to create an image that pinpoints thepresence on a person of metallic, ceramic and other materials, including plasticexplosives. Farran's detection portal, which uses its established millimetrewave technology, has been tested successfully in the laboratory and prototypefield trials are expected to begin within 12 months. "Smiths Detection is a world-leading business in a growth market, and it isimportant that we maintain the momentum by broadening the technology base,"commented Keith Butler-Wheelhouse, chief executive of Smiths Group. "Thetechnology which Farran brings to us will strengthen our ability to provideadvanced security solutions, particularly in the transportation sector." Stephen Phipson, group managing director of Smiths Detection added: "There is anurgent global requirement for equipment that screens people for explosives andhidden objects. The Farran technology complements our x-ray and trace detectionequipment widely used for airport and building security, and ensures that westay at the forefront in the development of detection systems." Farran designs and produces its own millimetre-wave sensors which are vital tofuture portal development. It also designs and manufactures high performancemicrowave sub-systems components for broadband wireless and imagingapplications. It is one of very few companies outside the USA with highfrequency design capabilities in this field. Smiths Detection plans to expand Farran's research and development activity tosupport the continued growth of its microwave sub-systems operations. Farran Technology is owned by its local founders, its management and two Irishventure capital funds. Smiths is acquiring the business for an initial €19million plus deferred performance-related consideration up to a maximum of €5million. The acquisition is being satisfied in cash. Farran is based in Cork,the Republic of Ireland, where it was founded in 1977 to supply microwavecomponents and sub-systems to laboratories. Smiths Detection offers technologically advanced security solutions to detectand identify explosives, chemical & biological agents, weapons and contraband.Employing trace detection technology together with Smiths Heimann x-ray imaging,Smiths Detection provides screening solutions for customers in civil andmilitary markets worldwide. Smiths Group designs and manufactures safety critical systems and products andhas market-leading positions in aerospace systems, detection equipment, medicaldevices, and mechanical seals and interconnect products. For further information, visit www.smiths-group.com -Ends- Contacts Media Caroline Harris +44 (0)20 8457 8403 Trade and technical media Richard Bayliss +44 (0)1923 658106 Investor Relations Russell Plumley +44 (0)20 8457 8203 This information is provided by RNS The company news service from the London Stock Exchange

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