Smiths Group is kicking off the sale of its Interconnect business, distributing information memoranda (IMs) to prospective buyers this week, three sources familiar with the situation said.

The UK-listed engineering conglomerate is marketing electronic component manufacturer Interconnect off LTM EBITDA of GBP 90m, one source said. According to a previous analysis by this news service, Interconnect could be worth about GBP 800m.

This news service reported in February that Smiths had mandated JP Morgan and Goldman Sachs to guide the carve-outs of its Interconnect and Detection divisions after the company announced in January it planned to divest the units under plans to unlock value and boost shareholder returns.

Interconnect, which makes connectivity products for the aerospace and defence, medical, semiconductor, and industrial end markets, is attracting both sponsors and strategic suitors, two of the sources said. Trade players have been expressing interest in Interconnect as a whole, while sponsors may find more value in acquiring select parts of the business, one of the sources said. Strong interest from trade players is likely to be deterring potential PE buyers, the other source added.

Large US-based peers include Molex, Amphenol Corporation, TE Connectivity, Carlisle Interconnect Technologies and Samtec, as reported.

Smiths, meanwhile, recently distributed sale teasers for its Detection division and aims to launch the sale process in September, two of the sources said. Detection, which makes airport security equipment, is garnering strong interest from PE players, they added.

Smiths Group, with a market cap of GBP 7.5bn, describes itself as a global leader in engineering technologies, serving diverse markets including energy, general industry, safety & security, and aerospace.

Founded over 170 years ago, the company employs more than 15,000 staff across more than 50 countries.

Representatives for Smiths Group, JP Morgan and Goldman Sachs declined to comment.