UK’s Smiths faces tough physio after M&A surgery

ICU Medical

08/09/2021 10:42

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Ed Cropley
    LONDON, Sept 8 (Reuters Breakingviews) - The $8 bln engineer
is flogging its health unit to ICU Medical for $2.4 bln, three
years after walking away from the same bidder. The sale is a win
for new boss Paul Keel. But for Smiths to warrant a jazzier
rating, he will have to work similar magic on languishing
margins.        
    Full view will be published shortly.
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    CONTEXT NEWS
    - British industrial technology firm Smiths Group said on
Sept. 8 that it had agreed to sell its medical unit to
U.S.-based ICU Medical for $2.4 billion, withdrawing backing for
a deal with private equity firm TA Associates. 
    - Smiths agreed a $2 billion sale to TA Associates in
August. Under the terms of the ICU Medical transaction, Smiths
will receive net cash proceeds of $1.85 billion, plus ICU shares
worth $0.5 billion. 
    - Smiths shares were up 3.4% at 14.69 pounds at 0730 GMT on
Sept. 8.

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
UK's Smiths to sell medical division to ICU for $2.4 bln, snubs
TA     urn:newsml:reuters.com:*:nL4N2QA1BC
Smiths Group statement    https://www.smiths.com/-/media/files/smiths-group-plc-superior-transaction-for-sale-of-smiths-medical.pdf
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Editing by Neil Unmack and Oliver Taslic)
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