Buy gives Smiths new dimension

SMITHS Group has strengthened its security equipment division with the £235m acquisition of German X-ray business Heimann Systems. The buy will enable the group to offer three-dimensional security systems to detect anything from weapons and explosives to drugs and chemicals at airports, military bases and ports.

Heimann is a world leader in two-dimensional X-ray systems and the acquisition will give Smiths global leadership of the market in defence and anti-terrorist detection systems. It plans to expand sales in America, where Heimann is weak, and grow new markets such as security for public buildings and tourist attractions. The acquisition will be funded from existing borrowings.

In the past year Heimann has grown sales by 50% as security was stepped up at ports and airports worldwide. Military orders are also increasing for equipment to detect nuclear, biological and chemical contamination and demand is growing from police forces for more sophisticated equipment to detect and identify traces of drugs and explosives.