Smiths Group PLC (LON:SMIN) has appointed Paul Keel as its new chief executive with immediate effect.
He is replacing Andy Reynolds Smith, who is stepping down from the board as “mutually agreed” with the engineering conglomerate because it’s “the right time to provide new leadership as Smiths enters into its next growth phase”.
READ: Smiths Group raises dividend with medical division demerger on track
Keel previously worked at 3M Company between 2004 and 2020, where he led global businesses including the Consumer Business Group that accounted for US$5bn of revenue.
He previously held senior roles at General Electric, McKinsey & Company and General Mills and he is a graduate of Carleton College and Harvard Business School.
The group said it remains committed to the separation of Smiths Medical, which, according to Citigroup, will be the most significant restructuring event in the group's recent history.
“While a disposal is still possible, a de-merger is our base case. We believe this could be the much-awaited catalyst that helps to unlock value ‘trapped’ in the conglomerate structure,” analysts said.
“We do not believe there are any synergies between Medical and the Industrial businesses and in our view a separation would leave Smiths Group looking more like an industrial business with management able to focus on maximising potential at John Crane, Detection, Interconnect and Flex-Tek.”
Shares dipped 1% to 1,551.5p on Tuesday morning.