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25 March 2009

SMITHS Interconnect, a division of the global technology company Smiths Group, today announced the expansion of its Chinese operations through the acquisition of Shenzhen Dowin Lightning Technologies, a market-leading Chinese producer of surge protection devices. The acquisition is subject to regulatory approval and is expected to complete within the next two months for an undisclosed sum.

Dowin, a privately owned business employing 380 people at its Shenzhen base near Hong Kong, designs and manufactures devices that protect electronic equipment from the effects of power surges caused by lightning and other extraneous sources of high voltage.  It posted sales of RMB 110 million in the last calendar year.
Smiths Interconnect already has a manufacturing base in China that has been expanded through two recently purchased companies that design and manufacture microwave components for the wireless telecoms equipment market. The acquisition of Dowin enables further penetration into the Chinese indigenous market, one of the fastest-growing economies in the world.

Ralph Phillips, President of Smiths Interconnect, said: "Dowin is a strong, profitable business with excellent technical skills and a well respected brand. It will complement our other protection capabilities, expanding our product range and providing an ideal local technology centre to service the regional demand through new channels to market.”

“The build out of 3G networks will drive significant growth in the Chinese wireless telecoms infrastructure market in the next two years and Dowin, with its good relationships with local telecoms operators and equipment providers, is well positioned to benefit from this. Furthermore, the company has exciting opportunities to grow into other sectors such as rail and power generation as well as into international markets.”

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