Smiths Group has acquired US-based manufacturer, Heating & Cooling Products (HCP), for $82m (£65m) on a cash and debt-free basis.

The acquisition of the heating, ventilation and air conditioning (HVAC) solutions company is set to expand Smiths Group’s presence in the North American HVAC market. This enables Smiths to serve customers with an ever broader product range, including HCP’s patented axial radial seal duct technology which improves energy efficiency.

As part of the acquisition, HCP will be integrated into Smith’s flex-tek division.

HPC’s unaudited revenue for the 12 months to 31 July 2023 was $69m (£55m). HCP was purchased by a private seller in a proprietary transaction for less than seven times its estimated 2023 EBITDA.

Chief executive officer at Smiths Group, Paul Keel, said: "Smiths has now posted eight straight quarters of growth, and the addition of HCP allows us to further build on this momentum by adding synergistic capabilities, through an accretive transaction, in a market we know well."

Share Story: