Smiths Group plans £6 bn healthcare merger with ICU Medical
Category: #health  By Ojaswita Kutepatil  Date: 2018-05-28
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Smiths Group plans £6 bn healthcare merger with ICU Medical

British engineering business firm Smiths Group has reportedly opened talks with the U.S.-based ICU Medical Inc., over a potential GBP 6 billion deal to merge their medical device businesses. According to sources, the engineering giant has apparently held discussions about fusing its healthcare arm with a string of companies.

Reliable sources affirm that the Smiths Group has been for some time actively exploring options for its medical arm, Smiths Medical, that makes healthcare products such as mechanical ventilators and infusion pumps widely used in the hospitals. For the record, the business unit has also played a significant role in the successful surgical conception of the first test tube (IVF) baby.

According to latest reports, Smiths reported disappointing first-half profits in month of March for financial year 2018. The British engineering company’s largest medical devices unit was apparently hit by delays to launch new products into the market, while the revenues at the division dropped 5% to 451 million pounds (approximately USD 600.2 million) for the first six months of the year 2018.

If sources are to be believed, Smiths Medical has been the subject of M&As even before. A private equity group Apax had approached the parent company to buy the division for about GBP 2.45 billion, however the deal was declined in 2011. Reports reveal that since the past 10 years, Smiths has been the target for dismantling because of its pool of disparate businesses.

In a company statement, Smiths Group reported that they are still unsure of the transaction as it was at ‘very early stage’ discussion. Moreover, no financial details were revealed as there was no certainty that the deal would come to fruition.

Chief executive, Andrew Reynolds Smith has been reportedly spearheading the move and has revealed his strategy to build the company by focusing on divesting its smaller units that are not core. 



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Ojaswita Kutepatil

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Ojaswita Kutepatil

Ojaswita Kutepatil, a mechanical engineer by qualification, presently develops content for Market Size Forecasters, Algosonline, and other similar platforms. Having had a prior experience in Business Development and Technical Engineering, she now pens down articles pe...

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