Smiths Group agrees $2.4bn sale of med unit to ICU Medical
Company withdraws support for $2bn offer from TA Associates
Smiths Group
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08:49 24/04/24
Industrial technology group Smiths Group said it agreed to sell is medical business to US-based ICU Medical for $2.4bn, withdrawing its support for a rival $2bn offer from TA Associates agreed last month.
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Smiths agreed to sell the division, which makes respiratory devices and catheters, as it shifted focus to its core industrial technology business.
“The ICU Transaction delivers $0.4bn more value to shareholders and carries future material upside through both participation in ICU Medical equity and a $0.1bn 'earnout'. In light of this, the Smiths board has withdrawn its recommendation of the TA Transaction,”v Smiths said in a statement.
Smiths said it was planning to return 55%, equivalent to £737m at current exchange rates, of the initial net cash proceeds to shareholders via a share buyback. The retained net cash proceeds would be used to create “a strong balance sheet” and support investment in growth opportunities.