Smiths Group PLC Smiths Group divests Wallace for £140 million (4387O)
07 November 2016 - 6:00PM
UK Regulatory
TIDMSMIN
RNS Number : 4387O
Smiths Group PLC
07 November 2016
News Release
London, 7 November 2016
For immediate release
Smiths Group divests Wallace for GBP140 million
Smiths Group plc ("Smiths Group" or the "Company") today
announces that it has completed the sale of its Wallace product
line ("Wallace"), a part of the Specialty products segment of
Smiths Medical, to CooperSurgical, Inc. ("CooperSurgical") for a
value of GBP140 million, subject to customary closing
adjustments.
This disposal is part of an ongoing programme to focus the
Company's portfolio on market leading positions of scale in its
chosen markets. The proceeds will be reinvested in attractive
growth opportunities for the Company.
Wallace was a pioneer in in-vitro fertilisation ("IVF") with the
introduction of its first embryo replacement catheter more than 30
years ago. Wallace reported total revenues of GBP20 million in the
year ended 31 July 2016, representing 2% of Smiths Medical revenue,
with approximately GBP12 million of operating profit.
CooperSurgical supplies women's health clinicians with
market-leading products and treatment options to improve the
delivery of healthcare to women. Through its Origio business,
CooperSurgical is a leader in delivering innovative Assisted
Reproduction Technology ("ART") solutions. Origio has a strong
presence worldwide with a broad product portfolio for the ART
market.
Andy Reynolds Smith, Chief Executive of Smiths Group, said:
"This disposal demonstrates our ongoing commitment to focus our
portfolio on building scalable technology differentiated leadership
positions in our chosen markets. Wallace has a long and
distinguished history in IVF and Smiths is proud to have played a
role in developing the business over our 24 years of ownership. I
am confident that Wallace will continue to develop as part of
CooperSurgical's broader offering in this area.
"Since commencing our disposal programme, we have disposed of
GBP60 million of revenue and released over GBP170 million of
capital for reinvestment in opportunities that offer the best
levels of sustainable growth and value creation for the Company in
our chosen markets."
Gleacher Shacklock LLP acted as financial adviser to Smiths
Group.
ENDS
Contact details
Investor enquiries
Andrew Lappin, Smiths Group
+44 (0)20 7004 1657
+44 (0)78 0500 7035
andrew.lappin@smiths.com
Kirsty Law, Smiths Group
+44 (0)20 7004 1672
+44 (0)75 8315 4386
kirsty.law@smiths.com
Media enquiries
Andrew Lorenz, FTI Consulting
+44 (0)203 727 1323
+44 (0)777 564 1807
smiths@fticonsulting.com
Deborah Scott, FTI Consulting
+44 (0)203 727 1459
+44 (0)797 953 7449
smiths@fticonsulting.com
Smiths Group is a global technology company listed on the London
Stock Exchange (SMIN) and operates a sponsored level one ADR
programme (SMGZY). A world leader in the practical application of
advanced technologies, Smiths Group delivers products and services
for the threat & contraband detection, medical devices, energy
and communications markets worldwide. Smiths Group employs more
than 22,000 people in over 50 countries. For more information visit
www.smiths.com.
Smiths Medical is a leading supplier of specialty medical
devices and consumables that are vital to patient care around the
world. Smiths Medical is dedicated to providing innovative
solutions and superior support to help healthcare professionals and
providers ensure safety, enhance patient outcomes and improve the
total cost of care. Smiths Medical offers a broad portfolio of
products that aid in the delivery of medication, protect healthcare
workers and patients from cross-infection and injury, manage
patient airway and temperature, and deliver specialised care in
diagnostics and emergency patient transport.
Disclaimer
This announcement contains certain statements that are
forward-looking statements. They appear in a number of places
throughout this announcement and include statements regarding our
intentions, beliefs or current expectations and those of our
officers, directors and employees concerning, amongst other things,
our results of operations, financial condition, liquidity,
prospects, growth, strategies and the business we operate. By their
nature, these statements involve uncertainty since future events
and circumstances can cause results and developments to differ
materially from those anticipated. The forward-looking statements
reflect knowledge and information available at the date of
preparation of this announcement and, unless otherwise required by
applicable law, Smiths undertakes no obligation to update or revise
these forward-looking statements. Nothing in this document should
be construed as a profit forecast.
No statement in this announcement is intended to be a profit
forecast and no statement in this announcement should be
interpreted to mean that earnings per Smiths ordinary share for the
current or future financial years would necessarily match or exceed
the historical published earnings per Smiths ordinary share. Prices
and values of, and income from, shares may go down as well as up
and an investor may not get back the amount invested. It should be
noted that past performance is no guide to future performance.
Persons needing advice should consult an independent financial
adviser.
Gleacher Shacklock LLP ("Gleacher Shacklock"), which is
authorised and regulated in the United Kingdom by the Financial
Conduct Authority, is acting exclusively for Smiths Group and no
one else in connection with the matters set out in this
announcement, and will not be responsible to anyone other than
Smiths Group for providing the protections afforded to clients of
Gleacher Shacklock or for providing advice in relation to matters
set out in this announcement or any offer or arrangements referred
to herein.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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