The FTSE 100-listed engineer said the divestment is part of its “ongoing corporate programme to concentrate the portfolio on scalable market-leading positions in the company’s chosen markets”
Smiths Group PLC (LON:SMIN) has reached an agreement to sell the Bearings business of its John Crane subsidiary to a private Austrian company, Miba AG for an enterprise value of US$35mln.
The FTSE 100-listed engineer said the divestment is part of its “ongoing corporate programme to concentrate the portfolio on scalable market-leading positions in the company’s chosen markets.”
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The group said the proceeds will be reinvested in “attractive growth opportunities” for the company.
The Bearings business – which manufactures and maintains hydrodynamic bearings for the power generation, oil & gas and general industrial markets – reported total revenue of US$56mln in the year ended 31 July 2017, with a 12% EBITDA margin and represented around 5% of John Crane’s total revenue.
The transaction, which is subject to the satisfaction of certain regulatory conditions, is expected to complete by the end of March 2018.
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Andy Reynolds Smith, chief executive of Smiths Group, said: “This divestment shows further progress in focusing Smiths Group’s portfolio as we reposition ourselves for long-term growth in markets where we can build leading positions.
“This is the second disposal in John Crane having sold Artificial Lift in September 2016. John Crane is now a more focused business leveraging its technology leadership and service network of over 200 sites across the globe.”