DRC Heat Transfer, which makes power and cooling equipment for data centers, has been acquired by UK industrial engineering firm Smiths for £164 million ($219m).

Illinois-based DRC will be integrated into Flex-Tek, another Smiths business that makes pipes, hoses and other systems for industrial fluid management. The combination will give Flex-Tek “a wider customer group in fast-growing end markets with DRC products and solutions that are additive to Flex-Tek’s existing portfolio.”

A statement from the firm said: “DRC’s technology and engineering-led customer intimacy extends Flex-Tek Heat’s offering into cooling applications and adds broader thermal solutions capabilities.

“The acquisition will also strengthen Flex-Tek’s presence in the power generation market where growth is underpinned by significant structural growth trends, in particular for data center back-up power, and other mission-critical applications.”

Roland Carter, CEO of Smiths Group, said: “This acquisition marks further progress on our strategy as we scale Flex-Tek’s industrial heat business into higher-growth end markets. With strong exposure to the growing data center market, and with wider power generation capabilities, this acquisition not only broadens our capabilities for existing customers but increases the addressable market for Flex-Tek into fast-growing adjacencies.

“We are excited to welcome the team to Smiths and to build on their expertise to deliver even greater value for our customers.”

DRC employs 250 people at its base just outside Chicago. The firm was founded in 1970 with a focus on making radiators and radiator parts for railways and other industrial settings, and has since broadened its scope to complete cooling systems for a variety of industrial uses.

It generated $97.5 million (£73m) in revenue in 2025.