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News
Release
London;
US Release
Embargoed
until 5.00pm EST on 24/04/2004
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Smiths
Group plc
765 Finchley Road London NW11 8DS
T: +44 (0)20 8457 8403 F:
+44 (0)20 8458 0680
www.smiths-group.com
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Smiths Group agrees to buy TRAK from Veritas
Capital for $111.5 million
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| Smiths
Group today announced the acquisition of
TRAK Communications Inc., a leader in the
design and manufacture of microwave sub-systems,
antennas and related components, for $111.5
million (£63m) from Veritas of New
York. TRAK will form part of Smiths Interconnect,
a leader in the supply of application specific
electronics for military and commercial
markets. This acquisition is the fifth Smiths
has announced since presenting its interim
results on 10 March, bringing total expenditure
to $330.5 million (£187m).
Commenting
on this acquisition, Smiths Group chief
executive Keith Butler-Wheelhouse said;
"Smiths continues to pursue its strategy
of profitable growth through investing
in new technology and the acquisition
of businesses which complement or expand
our offering to the customer. This is
our fifth purchase announcement in five
weeks and underlines our intent to acquire
high growth companies."
TRAK,
with 425 employees and 2003 turnover of
$71 million (£40m) operates from
facilities in Tampa in Florida, Thousand
Oaks, California and Dundee, Scotland.
Smiths Group is satisfying the acquisition
consideration in cash. It is expected
to close at the end of May, subject to
regulatory approvals.
Robert
B. McKeon, Chairman of Veritas Capital,
said, "Our investment in TRAK is
consistent with Veritas Capital's investment
strategy of partnering with quality companies
to increase value for our investors and
partners. Smiths clearly recognizes that
TRAK is now positioned to enhance its
business portfolio and deliver results
from the outset."
Einar
Lindh, group managing director of Specialty
Engineering added; "TRAK brings a
portfolio of world-class microwave sub-systems
which is complementary to Interconnect's
products. It will extend our capability
in existing markets, and by packaging
together Interconnect and TRAK products,
we will enhance our position with customers."
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| About
Smiths Group |
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Smiths
Group designs and manufactures safety
critical systems and products, and has
market leading positions in aerospace
systems, detection systems, medical devices,
mechanical seals, and interconnect products.
For further information, visit www.smiths-group.com
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About
Smiths Interconnect
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Smiths
Interconnect offers a broad range of electrical
and electronic connectors, low loss coaxial,
cable and connector assemblies, microwave
components, antennas, lightning strike
protectors, electrical surge suppressors,
radio-frequency connectors and passive
intermodulation analysers. They are supplied
to military and commercial customers for
integration into systems which require
high standards of connectivity, longevity
and durability.
For details of Smiths Specialty Engineering
visit www.smiths-industrial.com
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| About
TRAK Communications Inc. |
| Founded
in 1960 as TRAK Microwave, the business
developed with the acquisition of TECOM
and TRAK Europe, before being acquired by
Veritas, a New York private equity company.
TRAK has market leading positions in three
key technologies: 'sources', devices used
to generate highly accurate base frequencies
for communication systems; ferrites, magnetic
devices used to isolate or combine microwave
signals; and rugged antennas for military
and airborne applications. Sales to governments,
or to projects whose ultimate customers
are government agencies, account for over
half of TRAK's business, principally US
defence projects, unmanned vehicles and
avionics applications. Significant defence
customers include Raytheon, BAE Systems,
Northrop Grumman, Harris and Boeing. TRAK
also enjoys good positions on commercial
projects with major customers such as Nokia,
Motorola, and Ericsson. |
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About
Veritas Capital
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Veritas
Capital is a private equity investment
firm headquartered in New York. Founded
in 1992, Veritas invests in a broad range
of companies through middle market buyouts,
growth capital investments, and leveraged
recapitalizations. Through its investment
funds, Veritas manages equity capital
committed from leading financial institutions,
state pension funds, insurance companies
and high net worth individuals and families.
For more information visit www.veritascapital.com
Enquiries:
Media:
Bernard Carey: +4420 8457 8403
Caroline Harris: +4420 8457 8306
Investors:
Russell Plumley +4420 8457 8203
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