Smiths To Acquire Safran’s Morpho Detection Business For $US710 Million
MORPHO Detection will become part of British technology company Smiths Group's Detection division, which designs and manufactures sensors that detect and identify explosives, weapons, chemical agents and other contraband. The $US710 million deal will give Smiths Group additional explosive detection capabilities.
Safran flagged a sale in March when it said it was reviewing its security activities after putting the Morpho business up for sale and would be focusing on aviation and defence.
“The threat environment for people and critical infrastructure around the world is constantly evolving and becoming more complex and sophisticated,” Smiths Group CEO Andrew Reynolds said. “The response, to keep people safe and the world running, demands cutting-edge technology and cost-efficient solutions.”
The company’s expected annual cost synergies of about $30 million will be delivered by the third full year following closing, according to a press release. The company expects mid-single digit earnings per share accretion in the first full year of ownership. The closing of the acquisition is subject to customary conditions, including regulatory approvals. The deal is expected to close in early 2017. ♦