Smiths Group plc (Smiths) and General Electric Company (GE) announce that, following the Letter of Intent announced on 15 January 2007, they have signed a Formation Agreement, an important stage in the creation of Smiths GE Detection. As previously agreed, Smiths will own 64% and GE will own 36% of the new venture.
The transaction remains conditional on the approval of Smiths shareholders, certain regulatory approvals and a number of supplementary agreements between Smiths and GE that require additional detailed work and technical input. Smiths has agreed to pay GE a break fee of 35 million in certain circumstances.
With regard to the expected timetable to completion, it is anticipated that the preparation of the necessary audited financial information for the shareholder circular will take several months. Completion of the transaction is currently targeted for the second half of the 2007 calendar year.
General Electric Company
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Russell Wilkerson