In a major strategic shift, the historic engineering firm Smiths Group has finalised a multi-billion-pound agreement to divest its airport security scanner business.
A £2 Billion Transaction with CVC
The FTSE 250 company announced on Wednesday, 3 December 2025, that it will sell its Smiths Detection division to the global private equity firm CVC Capital Partners. The total enterprise value of the deal is £2 billion, which includes debts. Smiths Group is set to receive cash proceeds of approximately £1.85 billion from the transaction.
This sale represents the latest and largest step in a broader restructuring plan, coming just weeks after the group agreed to a £1.3 billion sale of its Smiths Interconnect unit to US-based Molex Electronic in October.
Investor Pressure Drives Strategic Focus
The decision to break up parts of the 170-year-old conglomerate follows sustained pressure from investors. Notably, the US investment group Engine Capital, a shareholder, had argued that Smiths' share price could be worth around 60% more if it sold off certain divisions.
In response, Smiths is now sharpening its focus on its core industrial engineering strengths. The future of the streamlined group will centre on two remaining businesses: John Crane, which manufactures seals and components for heavy industries, and Flex-Tek, a specialist in heating elements and thermal solutions.
Leadership and Future Returns
Smiths Group Chief Executive Roland Carter hailed the sale as a "significant milestone" in the company's transformation. "We are focusing Smiths as a premium industrial engineering company specialising in flow management and thermal solutions, and today’s announcement positions us strongly to deliver enhanced growth and returns," Carter stated.
The group confirmed its intention to boost returns for shareholders following the disposals. This plan is already in motion, with a £1 billion share buyback programme announced last month. The sale of Smiths Detection is expected to be completed in the second half of 2026, subject to regulatory approvals.
Smiths Group, one of the UK's largest industrial firms, employs about 16,000 people across more than 50 countries, serving sectors from energy and aerospace to semiconductors and automotive.
