Published by Global Banking & Finance Review®
Posted on October 16, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleSmiths Group sells its interconnect unit to Molex for $1.75 billion, focusing on industrial tech. The deal aids Molex's aerospace expansion.
(Reuters) -Smiths Group said on Thursday it will sell its interconnect unit to U.S. electronic components maker Molex Electronic in a deal valued at 1.3 billion pounds ($1.75 billion), after facing investor pressure to break up the conglomerate.
Under pressure from U.S. activist investor Engine Capital, Smiths Group said earlier this year that it would divest its interconnect arm to focus on industrial technologies through its John Crane and Flex-Tek businesses.
Joe Nelligan, CEO of Molex, said in a statement the deal will enable the company to expand its aerospace and defense business. Molex is a unit of industrial conglomerate Koch.
Smiths Interconnect makes products including defence and satellite communications, antenna systems and multi-function radio frequency systems.
The unit, which has operations across 12 countries, had revenue of 421 million pounds in fiscal 2025, accounting for about 13% of the group's total revenue of 3.34 billion pounds, its latest annual report showed.
The deal is expected to close in the second half of fiscal 2026.
Smiths Group continues to progress with both the sale and demerger processes for its Smiths Detection business, which makes baggage-screening kits and explosives detectors, the company said on Thursday.
Its board will provide an update on how it will use proceeds from the sale of its interconnect unit in its first-quarter trading statement due November 19.
($1 = 0.7443 pounds)
(Reporting by Abu Sultan, Preetika Parashuraman and Rishabh Jaiswal in Bengaluru; Editing by Shailesh Kuber)
A divestment is the process of selling off a subsidiary or business unit, often to focus on core operations or improve financial performance.
An interconnect unit refers to a division within a company that specializes in electronic components that connect various devices, often used in telecommunications and defense.
Corporate strategy is a company's overarching plan to achieve its goals and objectives, including decisions on resource allocation, business operations, and market positioning.
The aerospace industry encompasses the development and manufacturing of aircraft, spacecraft, and related systems and equipment, focusing on both commercial and military applications.
A conglomerate is a large corporation that consists of diverse business units across various industries, often formed through mergers and acquisitions.
Explore more articles in the Finance category
