LONDON - Smiths Group (OTC:SMGZY) plc, a global industrial technology company, has announced the acquisition of Duc-Pac Corporation, a US-based manufacturer specializing in metal ductwork for heating, ventilation, and air conditioning (HVAC) systems. The transaction, valued at $40.5 million, is aimed at strengthening Smiths Group’s Flex-Tek business within the North American construction sector.
The purchase of Duc-Pac is a strategic move by Smiths Group to broaden its market reach in the northeast region of the United States. Duc-Pac is recognized for its established brand, customer relationships, and operational business model. Smiths Group anticipates that this acquisition will provide growth opportunities through increased market presence and potential cross-selling to the combined customer base.
Roland Carter, CEO of Smiths Group, expressed optimism about the future of the Flex-Tek business and the company’s commitment to growth through acquisitions. "The acquisition of Duc-Pac enhances our North American construction business, with many customer synergies and growth opportunities," Carter stated.
Financially, the Duc-Pac acquisition is expected to be accretive to Smiths Group’s margin. The company was acquired at a multiple of 7.2 times its trailing 12 months reported EBITDA.
Smiths Group, with a history spanning over 170 years, is focused on engineering advancements in various global markets, including energy, security & defense, space & aerospace, and general industrial sectors. The company employs approximately 15,000 people across more than 50 countries and is listed on the London Stock Exchange (LON:LSEG).
The information in this article is based on a press release statement from Smiths Group plc.
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