Smiths Group plc (“Smiths Group” or the “Company”) today announces that it has completed the sale of its Wallace product line (“Wallace”), a part of the Specialty products segment of Smiths Medical, to CooperSurgical, Inc. (“CooperSurgical”) for a value of £140 million, subject to customary closing adjustments.
This disposal is part of an ongoing programme to focus the Company’s portfolio on market leading positions of scale in its chosen markets. The proceeds will be reinvested in attractive growth opportunities for the Company.
Wallace was a pioneer in in-vitro fertilisation (“IVF”) with the introduction of its first embryo replacement catheter more than 30 years ago. Wallace reported total revenues of £20 million in the year ended 31 July 2016, representing 2% of Smiths Medical revenue, with approximately £12 million of operating profit.
CooperSurgical supplies women’s health clinicians with market-leading products and treatment options to improve the delivery of healthcare to women. Through its Origio business, CooperSurgical is a leader in delivering innovative Assisted Reproduction Technology (“ART”) solutions. Origio has a strong presence worldwide with a broad product portfolio for the ART market.
Andy Reynolds Smith, Chief Executive of Smiths Group, said:
“This disposal demonstrates our ongoing commitment to focus our portfolio on building scalable technology differentiated leadership positions in our chosen markets. Wallace has a long and distinguished history in IVF and Smiths is proud to have played a role in developing the business over our 24 years of ownership. I am confident that Wallace will continue to develop as part of CooperSurgical’s broader offering in this area.
“Since commencing our disposal programme, we have disposed of £60 million of revenue and released over £170 million of capital for reinvestment in opportunities that offer the best levels of sustainable growth and value creation for the Company in our chosen markets.”
Gleacher Shacklock LLP acted as financial adviser to Smiths Group.