Smiths plans for separation of Smiths Medical

News Release

London, 22 March 2019

For immediate release

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Smiths Group plc ("Smiths" or the "Group")

Smiths announces its plans for the separation of Smiths Medical, to create two stronger, industry-leading companies

Further to the announcement on 14 November 2018, Smiths Group plc announces 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.

This will:

-     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."

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About Smiths Group plc

Smiths is a global technology company listed on the London Stock Exchange (SMIN) and operates a sponsored level one ADR programme (SMGZY). Its businesses share common characteristics (well-positioned in growing markets, technology-led, asset-light, digitising, with a high proportion of aftermarket revenues) and a common operating model (The Smiths Excellence System). For more information visit www.smiths.com.

About Smiths Medical

Smiths Medical is a leading supplier of specialised medical devices and equipment for global markets, focusing on medication delivery, vital care and safety devices. For more information visit www.smiths-medical.com.