Smiths Group and GE Embark on Billion-Dollar Sensors Joint Venture

Yesterday, DID covered GE Aerospace’s $4.8 billion acquisition of aircraft control & diagnostic systems manufacturer Smiths Aerospace, and explained the rationale for both sides. Their relationship goes beyond that single transaction, however; on January 16, 2007, Smiths Group and GE also announced that they have signed a letter of intent to create a detection joint venture between Smiths Detection and GE Security’s Homeland Protection business. Smiths GE Detection will be owned by Smiths Group (64%) and GE (36%). The transaction will be subject to approval by Smiths shareowners as well as customary regulatory reviews, and is conditioned on the completion of GE’s acquisition of Smiths Aerospace. So, what are these firms’ key foci, how do they combine, and how will the new firm be structured? Smiths Detection is headquartered in London, UK, with about 2,000 employees and $700 million revenues during 2006. The firm is a leading technology developer and manufacturer of sensors that detect and identify explosives, chemical and biological agents, weapons, and contraband. Its advanced technology security solutions also include Smiths Heimann x-ray imaging systems, millimeter-wave technology and a specialist software supply business for the management of large sensor and video surveillance networks. Separate business units focus on […]