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Smiths moots medical devices separation

The announcement follows several failed attempts to sell the struggling business
November 14, 2018Alex Janiaud

Smiths Group (SMIN) has spent years trying to find a home for its medical technologies division, Smiths Medical. Its most recent attempt this summer fell by the wayside after it failed to agree terms with California-based ICU Medical (US:ICUI) over a proposed combination of their healthcare operations. The engineering conglomerate was also unable to agree terms in negotiations to sell Smiths Medical to two different parties in 2013 and 2011, respectively.

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Management is now broadening potential options to ‘separate’ the medical business. The nature of the divorce agreement remains unknown, but could include a sale to a private equity firm or a rival, or de-merger and IPO of the business. Separation planning is “at an early stage” and management intends to provide an update alongside the group’s half-year results in March 2019.

Smiths hopes the separation will allow it to “concentrate on growing as an industrial technology group”. A spokesperson for the group said that the timing of the announcement was partly based on the strength of the market for medical technologies. All options for the planned separation remain on the table, they added.