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British industrial technology firm Smiths Group PLC announced Tuesday that it has agreed to acquire two North American companies, Modular Metal Fabricators Inc. and Wattco Inc., for a total of £110 million ($147 million). The acquisitions are part of Smiths’ strategy to expand its presence in North America's heating, ventilation, air conditioning (HVAC), and electrical heating markets.

Strategic Expansion in HVAC and Electrical Heating

Smiths plans to integrate Modular Metal Fabricators, a U.S.-based manufacturer of sheet metal fittings and ductwork, into its HVAC business. At the same time, Montreal-based Wattco, a producer of industrial electric heaters, will join Smiths' electrical heating solutions within its Flex-Tek division. Flex-Tek specializes in components like flexible hoses and tubing for the aerospace sector and conditioned air systems in buildings.

Roland Carter, CEO of Smiths, emphasized that these "strategic and disciplined acquisitions" will bolster the company’s HVAC and electrical heating solutions by adding new products, a broader customer base, and expanded geographical reach.

Smiths announces two North American acquisitions : Details of the Acquisitions

Modular Metal Fabricators, which has been in operation since 1970, serves the HVAC and roofing industries with sheet metal fittings and flexible ducting. The acquisition, set to close on October 1, 2024, will expand Smiths’ HVAC footprint in the Western U.S.

Wattco, known for its industrial electric heaters such as water immersion and open coil heaters, will enable Smiths to expand into medium temperature immersion and circulation heating—a complementary addition to Smiths’ existing offerings in electrical heating.

Continued North American Growth

These latest acquisitions follow Smiths’ $82 million purchase of U.S.-based Heating & Cooling Products in August 2023, which also became part of the Flex-Tek business. Additionally, Smiths sold a majority stake in U.S. company ICU Medical Inc. for $152 million in July, streamlining its operations and focusing on its core industrial technology segments.