Sales of Interconnect and Detection

Smiths Group’s divestment of its Interconnect and Detection businesses represents a best-in-class example of a decisive communications strategy around a complex transformation programme. Following a new corporate strategy roll-out in January 2025, Smiths committed to refocusing the Group through the strategic divestment of two core businesses and enhance shareholder returns. The communications strategy was designed to build confidence, manage uncertainty and maintain momentum throughout the significantly accelerated execution period.

A fully integrated communications plan addressed all key stakeholders including investors (including activists), sell and buy-side analysts, media, employees and customers. Externally, extensive scenario planning and proactive journalist engagement ensured the strategic rationale for “FutureSmiths” was well understood well ahead of transaction announcements. Robust leak-management protocols, holding statements and disciplined use of RNS announcements protected market integrity and mitigated the risk of negative coverage.

Proactive IR engagement enabled the sell-side to effectively model reporting structure changes, resulting in strong analyst endorsement of both transactions as “clean deals” that maximised shareholder value. This support was reflected in overwhelmingly positive media coverage and significant share price gains.

Internally, Smiths applied lessons from previous M&A activity to safeguard morale and trust. Clear, timely employee communications, leadership town halls and transparent updates, ensured alignment and continuity during heightened periods of change.

The communications strategy not only supported the delivery of transactions ahead of schedule and above consensus valuations, but materially enhanced Smiths’ reputation as a disciplined, high-performance industrial engineering group, with shares rising 31% since January and confidence strengthened across all stakeholder groups.