(Alliance News) - Smiths Group PLC on Friday said it completed the sale of its subsidiary Smiths Medical Inc to medical technology company ICU Medical Inc.
The deal, which assigned an enterprise value of USD2.7 billion to Smiths Medical, was first announced in September and approved by shareholders in November.
The London-based diversified engineering business will receive USD1.85 billion in cash immediately, plus USD600 million in shares of San Clemente, California-based ICU, which are Nasdaq-listed.
The company noted the enterprise value of Smith Medical could rise to over USD3.0 billion depending on ICU's share price over the next three years.
Smiths is returning 55% of the initial cash from the deal, or GBP742 million, in the form of a share buyback programme, with GBP64.3 million of this completed to date.
"I am pleased to announce that we have completed the sale of Smiths Medical ahead of schedule, another example of the accelerated pace at which we are now moving. This is our largest portfolio move in over a decade and positions us even more strongly to access the growth available in our industrial technology core," Chief Executive Paul Keel stated.
Shares in Smiths Group were down 0.2% at 1,594.50 pence each on Friday morning in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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Smiths Group (SMIN)