 |
Smiths Group agrees to buy TRAK from Veritas Capital for $111.5
million
London and New York, April 24, 2004 - 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.”
About Smiths Group
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
About Smiths Interconnect
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-specialtyengineering.com
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. www.smithsspecialtyengineering.com
About Veritas Capital
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
back to news
|
|
