22 March 2019

Smiths announces its plans for the separation of Smiths Medical

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

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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.”

 

 

Contact details

Investor enquiries

Jemma Spalton, Smiths Group
+44 (0)20 7004 1637
+44 (0)78 6739 0350
jemma.spalton@smiths.com

Marion Le Bot, Smiths Group
+44 (0)20 7004 1672
+44 (0)75 8315 4386
marion.lebot@smiths.com

Media enquiries

Deborah Scott, FTI Consulting
+44 (0)20 3727 1459
+44 (0)797 953 7449
smiths@fticonsulting.com

Alex Le May, FTI Consulting
+44 (0)20 3727 1308
+44 (0)7702 443 312
smiths@fticonsulting.com

Legal Entity Identifier (LEI): 213800MJL6IPZS3ASA11

 

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.