Private equity firm CVC Capital Partners is securing a £1.2 billion debt package to acquire Smiths Detection, the airport security scanner unit of Smiths Group Plc. Banks are preparing to sell the financing as part of a broader pickup in M&A activity, with this carveout marking one of the largest buyout financings to hit the market recently.

Smiths Detection, known for its advanced screening technology used in airports worldwide, represents a significant strategic asset in the security sector. The deal underscores growing investor confidence in infrastructure and security-related businesses, particularly those with stable government and commercial contracts. The financing structure suggests banks are willing to back large-scale buyouts despite recent market volatility, indicating strong appetite for quality assets.

This transaction follows a series of major carveouts as companies streamline operations and private equity firms capitalize on specialized business units. The successful placement of such a substantial debt package could signal renewed momentum in leveraged buyout markets, potentially paving the way for additional large-scale transactions in the security and infrastructure sectors.