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In a major shake-up within the global electronics sector, Smiths Group PLC announced Thursday that it has agreed to sell its Smiths Interconnect division to rival Molex Electronic Technologies LLC for £1.3 billion ($1.7 billion) in cash. The blockbuster deal, guided by White & Case LLP and Jones Day, marks a defining move for both industrial powerhouses as they look to reshape their footprints in aerospace and defense technology.

The acquisition, led by Molex—a subsidiary of U.S. industrial giant Koch Industries Inc.—underscores the company’s ambition to fortify its position in highly specialized markets. Smiths Group, a stalwart of the FTSE 100, said the sale represents a “notable step” in its long-term strategy to streamline operations and sharpen its focus on core industrial engineering activities.

Reinforcing a Global Aerospace Powerhouse

“This deal reinforces our commitment to the aerospace and defense market,” said Joe Nelligan, CEO of Molex. “By combining Molex’s global scale and financial stability with Smiths Interconnect’s complementary technologies and customer relationships, we’ll be able to serve our partners in new and innovative ways.”

Smiths Interconnect and Molex both design and produce mission-critical electronic components, connectors, RF systems, and fiber optic products used in everything from satellites and aircraft to advanced medical devices and semiconductor testing systems. The synergy between their capabilities promises to create one of the most comprehensive portfolios in the high-reliability electronics sector.

For fiscal 2025, Smiths Interconnect reported £86.1 million in EBITDA, underscoring its strong profitability and appeal as a target for strategic buyers.

Smiths Group to Return Sale Proceeds to Shareholders

Smiths Group disclosed earlier this year that it intended to divest both Smiths Interconnect and Smiths Detection, following pressure from shareholders to unlock value through strategic asset sales. The company confirmed it plans to return “a large portion” of the proceeds to investors.

Smiths is already executing a £500 million share buyback, expected to conclude by the end of the year. Details on how the fresh capital infusion will be deployed will be announced in the first quarter of 2026, the company said.

The transaction, slated to close in the first half of 2026, remains subject to regulatory approvals and customary closing conditions.

A Global Footprint and Legal Firepower

Smiths Interconnect operates across 21 locations in 12 countries, including key sites in the U.S., France, Mexico, and Singapore. The company noted that it will consult with its French works council on the transaction as required by French labor law. The council’s opinion, however, will be advisory rather than binding.

Legal representation for the deal includes White & Case LLP advising Smiths Group, while Jones Day represents Molex. The Jones Day team is led by partner Julian Runnicles, with support from associates Mohamed El Erian and Olivia Prioleau, and partners Jonathon Little, Rebecca Swindells, and Mark Jones.