Smiths Group to acquire DRC Heat Transfer for £164m
By Iain Gilbert
Date: Tuesday 03 Mar 2026
(Sharecast News) - Engineering firm Smiths Group has agreed to acquire US-based custom heat transfer and cooling solutions designer DRC Heat Transfer for £164m.
Smiths said on Tuesday that DRC will be integrated into its Flex-Tek unit's industrial heat business, enabling it to serve "a wider customer group" in fast-growing end markets with DRC products and solutions.
The FTSE 100-listed firm also said the acquisition will strengthen Flex-Tek's presence in the power generation marke, where growth was underpinned by "significant structural growth trends", in particular for data centre back-up power, and other mission-critical applications.
Smiths added that completion of the transaction was expected to take place in the second half of 2026.
Chief executive Roland Carter said: "This acquisition marks further progress on our strategy as we scale Flex-Tek's industrial heat business into higher growth end markets. With strong exposure to the growing data centre market and with wider power generation capabilities, this acquisition not only broadens our capabilities for existing customers but increases the addressable market for Flex-Tek into fast growing adjacencies."
Reporting by Iain Gilbert at Sharecast.com
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