November 07, 2016
Smiths Group divests Wallace for £140 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 £140 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 £20 million in the year ended 31 July 2016, representing 2% of Smiths Medical revenue, with approximately £12 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 £60 million of revenue and released over £170 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.
Andrew Lappin, Smiths Group
+44 (0)20 7004 1657
+44 (0)78 0500 7035
Kirsty Law, Smiths Group
+44 (0)20 7004 1672
+44 (0)75 8315 4386
Andrew Lorenz, FTI Consulting
+44 (0)203 727 1323
+44 (0)777 564 1807
Deborah Scott, FTI Consulting
+44 (0)203 727 1459
+44 (0)797 953 7449
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.
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.