Smiths to Sell Airport Screening Business to Private Equity for $2.2B
CVC Capital Partners to Acquire Smiths Detection for $2.2 Billion in Strategic Divestiture
CVC Capital Partners has agreed to acquire Smiths Detection, one of the world’s leading suppliers of aviation security screening equipment, in a $2.2 billion transaction that accelerates Smiths Group’s strategic repositioning toward focused industrial engineering operations.
SmithS Detection, headquartered in the UK with approximately 3,400 employees, maintains market leadership in airport security solutions. The company supplies screening systems to 47 of the world’s 50 busiest airports, with particular strength in its proprietary 3D computed tomography checkpoint scanners that enable faster passenger processing by allowing liquids and laptops to remain in carry-on luggage during X-ray examination.
Beyond aviation security, Smiths Detection operates across diversified markets including port and border inspection, cargo and vehicle screening, urban security infrastructure, and defense applications with chemical-threat identification capabilities. This dual civil-military portfolio has historically provided revenue resilience and market diversification.
SmithS Group expects to net approximately $2 billion in proceeds from the sale, with closure anticipated in the second half of 2026 pending regulatory approvals and French employee consultations. The transaction represents the second major portfolio action in 2025, following the October announcement of Smiths Interconnect’s sale. Combined, these divestitures total $3.5 billion in enterprise value and execute a strategic plan unveiled in January 2025 to separate non-core operations.
SmithS Group intends to return substantial proceeds to shareholders beyond an existing $1.25 billion buyback program, while retaining capital for growth investments and targeted acquisitions. The company will concentrate future efforts on its John Crane and Flex-Tek businesses, specializing in flow management and thermal solutions.
For CVC, the acquisition targets a security-technology platform with strong installed base characteristics and recurring aftermarket revenue streams. Smiths Detection generated $1 billion in revenue and $150 million in headline operating profit through July 2025, demonstrating robust demand for next-generation screening technology and a multi-year aviation orderbook.
CVC Managing Partner Dominic Murphy emphasized the firm’s commitment to investing in technology advancement and engineering excellence. The private equity buyer plans to accelerate aftermarket service expansion and capitalize on aviation security modernization trends globally.
The transaction underscores continued consolidation in aviation security infrastructure and reflects investor confidence in threat-detection technology markets amid evolving security requirements.
Source ID: SRCE-2025-1764966589000-1212