UK engineering conglomerate Smiths Group has agreed to sell its Smiths Interconnect business to US electronic components maker Molex Electronics in a £1.3 billion deal, marking a significant step in the company’s strategic reshaping. The transaction, expected to complete in the second half of next year, follows investor pressure to simplify the group and unlock shareholder value.

Smiths Interconnect, which produces broadband connection and antenna components, reported underlying earnings of £86.1 million in 2024-25. Proceeds from the sale will largely be returned to shareholders, complementing Smiths’ ongoing £500 million share buyback programme scheduled to finish by the end of 2025.

The move forms part of a broader strategy to focus Smiths on its John Crane subsidiary, which supplies seals and components for heavy industries, and its Flex-Tek business, specialising in heating elements. The group is also continuing plans to spin off Smiths Detection, its airport X-ray and security technology unit.

Chief Executive Roland Carter emphasised that the sale accelerates the company’s commitment to delivering a more focused industrial engineering profile, unlocking inherent business value and enhancing returns. Smiths, with a 170-year history and a global workforce of around 16,000 across more than 50 countries, spans sectors including energy, aerospace, aviation, construction, automotive and semiconductors.

US investment firm Engine Capital had urged the break-up, arguing the share price could rise by up to 60% if parts of the business were divested. The Interconnect sale and planned spin-offs are designed to streamline operations, sharpen strategic focus, and generate capital for investors while positioning Smiths as a more agile industrial engineering group.

Read the full story to see how Smiths is reshaping its portfolio and unlocking shareholder value.