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Highlights

  • Smiths Group acquires U.S.-based Duc-Pac Corporation for $40.5 million (£32 million).

  • The acquisition enhances Smiths Group’s presence in the North American HVAC market.

  • Duc-Pac’s integration into Flex-Tek’s construction segment is expected to drive growth and margin expansion.

Smiths Group plc (LSE:SMIN), a global leader in industrial technology, has announced the acquisition of Duc-Pac Corporation, a U.S.-based metal duct manufacturer for heating, ventilation, and air conditioning (HVAC) applications. The deal, valued at $40.5 million (£32 million), aligns with Smiths Group’s strategy to enhance its nationwide presence in the North American construction sector.

Duc-Pac brings an established brand, strong customer relationships, and an efficient operational model, particularly expanding Smiths Group’s geographical reach into the northeastern United States. The acquisition is expected to enhance market presence and generate cross-selling opportunities across the combined customer base.

Consistent with Smiths Group’s previous bolt-on acquisitions in the construction space, the purchase is expected to be margin-accretive, with Duc-Pac acquired at a 7.2x trailing 12-month EBITDA multiple.