Smiths Group Completion of Smiths Detection sale

Research evidence excerpt

Smiths Group Completion of Smiths Detection sale

C A Z E N O V E Europe Equity Research

30 June 2026

Smiths Group Overweight

SMIN.L, SMIN LN

Completion of Smiths Detection sale Price (29 Jun 26):2,529p

Price Target (Jun-27):2,810p

Our Take: Smiths has announced the completion of the sale of its Detection European Capital Goods

ACbusiness, which was first announced on December 3. There are three incrementally Chitrita C Sinha

new takewaways: 1) the deal has completed slightly earlier than H2’26; 2) the net (44-20) 7742-7176

cash proceeds of £1.9bn are ahead of the previously guided £1.85bn. This is due chitrita.sinha@jpmorgan.com

to lower transaction costs than anticipated; 3) The return of the £1.5bn will be J.P. Morgan Securities plc

entirely by share buyback rather than a combination of a buyback and special Phil Buller

dividend/tender. This will complete in CY27. Overall, we see this as a slight (44-20) 3493-9403

phil.buller@jpmorgan.com

positive given the uncertainty on timings and method of cash return to J.P. Morgan Securities plc

shareholders.

Akash Gupta

• Noteworthy Areas: 1) Smiths announced that it has completed the sale of (44-20)akash.z.gupta@jpmorgan.com7742-7978

Smiths Detection, which was originally announced in December 2025. The J.P. Morgan Securities plc

transaction was completed at an EV of £2bn, or 16.3x headline operating profit, Jeremy Caspar

which delivers immediate net cash proceeds to Smiths of more than £1.9bn, (44-20) 3493-5188

ahead of previous guidance of £1.85bn. 2) As previously announced, the jeremy.caspar@jpmorgan.com

Company intends to return £1.5bn of the Detection cash proceeds to J.P. Morgan Securities plc

shareholders. The Board has decided to return this via an on-market share Ram S Mehta