Smiths Group plc (LON:SMIN) announced its intention to pursue a demerger of the Smiths Medical business and separately list it in the UK. Smiths expects to complete the process during the first half of CY2020, conditional on the approval of Smiths’ shareholders. The Board will continue to evaluate all opportunities for value maximisation as the process goes forward, with the overriding objective of continuing to strengthen both Smiths Medical and Smiths in the interests of optimising shareholder value.
– Create two stronger, industry-leading companies with distinct strategies and focus;
– Enable Smiths to concentrate on growing as a leading Industrial Technology group, united by shared business characteristics and a common operating model; and
– Focus Smiths Medical on realising its full potential, to capitalise on its leading positions, its large programme of new product launches and value creating opportunities in its rapidly changing market.
In preparation, Smiths is making good progress on the recruitment of a Smiths Medical CEO and has assessed the timetable and workstreams involved in the demerger. Based on the work done to date, Smiths does not foresee any potential roadblocks in executing the demerger. The strategic plan for Smiths Medical will be further developed with the leadership over the coming months.
Andy Reynolds Smith, Chief Executive of Smiths, said:
“Pursuing a demerger of Smiths Medical will lead to two stronger companies each focusing on accelerating the execution of their plans and maximising the opportunities in their respective markets.
With sustained operational improvement and investment, both Smiths and Smiths Medical are well positioned to capitalise on their leadership positions and new products.
Smiths will become a leading Industrial Technology group concentrated on the execution of its organic and inorganic growth strategy whilst maximising shareholder value.”