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Smiths Group ends talks with ICU Medical over business combination after failing to agree terms

The FTSE 100-listed group said while its board recognised the complementary strengths of both businesses, it felt it was important that any such combination did not undervalue Smiths Medical and its prospects
Medical devices
Smiths Group said it will continue to review all options for its businesses

Smiths Group PLC (LON:SMIN) saw its shares fall on Thursday after the bluechip firm said discussions with ICU Medical Inc.(NASDAQ:ICUI) regarding a potential combination with its Smiths Medical business have ended because the parties have been unable to agree the terms of a combination.

In a statement, the FTSE 100-listed group said while its board recognised the complementary strengths of both businesses, it felt it was important that any such combination did not undervalue Smiths Medical and its prospects.

READ: Smiths Group shares gain after report of £2.8bn offer from ICU for medical division

The X-ray devices maker pointed out that in recent years, Smiths Medical has invested significantly in a substantial ongoing programme of new product launches. 

The group said it will continue its strategy to focus on organic growth, investing in R&D to strengthen its portfolio of category-leading products.

In parallel, Smiths added, it will continue to review all options for its businesses to enhance its leadership positions and optimise value for shareholders.

Andy Reynolds Smith, the firm’s chief executive of Smiths, said: “We remain confident that our strategy for Smiths Medical will drive market outperformance and world-class competitiveness. 

“Alongside continued active portfolio management across all our businesses, this will deliver long-term sustainable growth and attractive returns for our shareholders."

In early afternoon trading in London, Smiths Group Shares were 0.9% lower at 1,554p.

In pre-market trading in New York, ICU Medical shares were 0.8% lower at US$300. 

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