Smiths - Pension schemes landmark agreement

21 July 2026

SMITHS GROUP PLC

Smiths completes landmark £760m pension scheme buy-in

Smiths, a leading industrial engineering company, today announces that the Smiths Industries Pension Scheme ('SIPS', or 'the Scheme') has completed a £760 million buy-in transaction with M&G. This bulk annuity transaction, completed in July 2026, secures the benefits of more than 10,000 members and means that all c.17,000 members of the Scheme are now fully insured across five annuity policies with the Prudential Assurance Company, M&G's wholly-owned subsidiary, Canada Life, and Pension Insurance Corporation.

A bulk annuity buy‑in is an insurance policy purchased by the Trustee from an insurer. The Trustee was able to secure this bulk annuity buy-in transaction using the Scheme's existing assets and no additional contributions were required from Smiths.

The Scheme, first established in 1972, is an amalgamation of over thirty distinct sections representing historic Smiths businesses including EIS, Graseby, Hick Hargreaves and Flexibox, and is the largest defined benefit pension scheme sponsored by Smiths.

This transaction follows the successful buyout of Smiths other principal UK defined benefit pension scheme, the TI Group Pension Scheme, which completed a £900 million buyout in May. The buyout of this scheme, which represents historic Smiths businesses such as TI, Dowty, Lapmaster and Francis Shaw, means that benefits for all c.15,500 members of this scheme are now fully insured and paid directly by Aviva, Legal & General, Pension Insurance Corporation and Rothesay.

These transactions are a key part of Smiths ongoing strategy to de-risk its legacy obligations and come during an important year for the company. As Smiths celebrates its 175th anniversary, it has completed the sales of Smiths Interconnect and Smiths Detection, marking the completion of its strategic transformation and establishing Smiths as a focused industrial technology company specialising in flow control and thermal solutions.

Julian Fagge, Chief Financial Officer, said: "The completion of these transactions marks an important milestone in enhancing our balance sheet and demonstrates our commitment to the responsible management of our legacy obligations. These transactions provide greater financial security for our scheme members, removes pension risk and future cash funding requirements and reduces balance sheet volatility. This improved financial flexibility strengthens free cash flow and, together with the completion of our strategic transformation, further supports our repositioning as a focused industrial engineering company."

Simon Powell, Group Pensions Director, said: "I am proud to have supported our trustees in completing these landmark bulk annuity transactions. The successful completion of these deals is a testament to the expertise, diligence and collaboration of the Smiths pensions team, our trustees and everyone involved. It reinforces our ongoing commitment to protect the long-term security of our members' benefits and ensures long-term financial stability to Smiths." 

Nicholas Godden, Chair of the Trustee of Smiths Industries Pension Scheme, said: "Completing this £760 million buy-in with M&G is an important milestone for the Smiths Industries Pension Scheme and excellent news for our members. All members of the Scheme are now covered by an insurance policy, further improving the long-term security of their benefits while leaving their benefit entitlements unchanged."

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Legal Entity Identifier (LEI): 213800MJL6IPZS3ASA11

About Smiths

For 175 years, we have been pioneers of progress, engineering a better future. Our strategy is to be a focused, efficient and value creating industrial engineering company operating in the attractive and growing market segments of flow control, thermal solutions, construction and aerospace.

We focus on solving the toughest problems for our customers, helping address critical global needs such as decarbonisation and the ever-increasing demand for process and energy efficiency.

We are pioneers of progress. Engineering a better future, we drive efficiency for customers in mission-critical situations.

We are united by our purpose. It is what we do, how we think, and how we will continue to use our passion for innovative engineering. For more information visit www.smiths.com.