Industrial conglomerate Smiths Group (LON:SMIN) has poached a top manager at aerospace and automotive engineer GKN (LON:GKN) to be its new chief executive.
Smiths, which makes x-ray scanners for airports, medical devices and equipment for the energy and telecoms industries, has appointed Andrew Reynolds Smith to replace Philip Bowman.
Reynolds Smith is chief executive of GKN Automotive, which makes vehicle driveshafts and powder metal parts. He joins Smiths on September 25.
He said: "Smiths is a very special company with high quality global businesses and an enviable heritage of quality engineering and innovation.
"I'm excited by the opportunity to take Smiths into its next phase of growth and development."
Bowman, the former chief executive of energy supplier Scottish Power, will leave after eight years at the helm of Smiths.
When he joined the group, some thought he had been brought in to break it up and sell it. He previously oversaw the sale of energy supplier Scottish Power to Spain's Iberdrola.
Smiths chairman George Buckley said: "Philip has delivered improved margins, cash, and returns despite difficult trading conditions in one of the worst economic recessions in living memory.
"There is no doubt he leaves the business in substantially better shape than when he joined."
Shares in Smiths fell 31p to 1110p. GKN's stock dropped 2.9p to 322.8p.
Broker Berenberg initiated coverage on Smiths last month with a 'buy' rating. It said markets underestimated the potential of Smiths' John Crane and medical divisions.
"New management arriving at the end of 2015 will be a positive for the share price," it said.