Smiths Group to buy aircraft engine parts maker United Flexible in $345 million deal: Reuters

Smiths Group (SMIN.L) said on Thursday it would buy United Flexible Inc, a U.S.-based maker of parts for aircraft engines, from private equity firm Arlington Capital Partners for an enterprise value of $345 million.

United Flexible, which has operations in the United States and Europe, makes products that are used in Airbus (AIR.PA) A320neo aircraft and United Technologies’ (UTX.N) Pratt & Whitney PW1000G and F135 engines.

The deal comes after the British engineering group’s talks with U.S.-based ICU Medical Inc (ICUI.O) over a possible 7 billion pounds-plus merger of their healthcare businesses fell through last month.

Smiths Group expects to fund the deal from existing cash and bank facilities, and said that United Flexible would be integrated into its Flex-Tek division, which provides heating components to the aerospace, construction and medical industries.

United Flexible is expected to generate sales of $157 million and adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of $32 million for 2018, it said. Gleacher Shacklock LLP was financial adviser to Smiths Group on the transaction.