Smiths Group plc (LON:SMIN) today announced that it has reached an agreement to sell Smiths Medical’s sterile water bottling business to Amsino Healthcare (USA), Inc., for an enterprise value of $40m, representing a 4x revenue multiple based on FY18 revenue. The deal is expected to complete in the first half of FY2019.
The divestment demonstrates further progress on the Group’s ongoing programme to concentrate the portfolio on scalable market leading positions in the Company’s chosen markets. The proceeds will be reinvested in attractive growth opportunities for the Company.
Andy Reynolds Smith, Chief Executive of Smiths Group Plc, said:
“The sale of this business demonstrates further progress as we focus Smiths Group portfolio on scalable market leading positions in our chosen markets.
With a strong portfolio of category leading products trusted by clinicians and patients around the world and with over 20 products launched in the last year, we are confident that our strategy for Smiths Medical will drive market out performance and world-class competitiveness over the medium term.”