Oct 16 (Reuters) - Smiths Group ( SMGKF ) said on

Thursday it will sell its interconnect unit to U.S. electronic

components maker Molex Electronic in a deal valued at 1.3

billion pounds ($1.75 billion), after facing investor pressure

to break up the conglomerate.

Under pressure from U.S. activist investor Engine Capital,

Smiths Group ( SMGKF ) said earlier this year that it would divest its

interconnect arm to focus on industrial technologies through its

John Crane and Flex-Tek businesses.

Joe Nelligan, CEO of Molex, said in a statement the deal

will enable the company to expand its aerospace and defense

business. Molex is a unit of industrial conglomerate Koch.

Smiths Interconnect makes products including defence and

satellite communications, antenna systems and multi-function

radio frequency systems.

The unit, which has operations across 12 countries, had

revenue of 421 million pounds in fiscal 2025, accounting for

about 13% of the group's total revenue of 3.34 billion pounds,

its latest annual report showed.

The deal is expected to close in the second half of fiscal

2026.

Smiths Group ( SMGKF ) continues to progress with both the sale

and demerger processes for its Smiths Detection business, which

makes baggage-screening kits and explosives detectors, the

company said on Thursday.

Its board will provide an update on how it will use proceeds

from the sale of its interconnect unit in its first-quarter

trading statement due November 19.

($1 = 0.7443 pounds)