Smith & Nephew buys Indian trauma business

MEDICAL technology group Smith & Nephew has announced it is to acquire an Indian trauma business.

The firm, whose UK orthopaedics operation is based at Warwick Technology Park, is to acquire Adler Mediequip Private Limited and with i, the brands and assets of Sushrut Surgicals Private Limited, a leader in mid-tier, orthopaedic trauma products for the India market.

The transaction is expected to complete upon the satisfaction of customary conditions. The terms are not disclosed.

The acquisition will give Smith & Nephew a well-established platform to provide and develop products for the mid-tier market in India and for export. In particular, it gives Smith & Nephew an entry point to India’s fast growing trauma segment.

Olivier Bohuon, chief executive officer at Smith & Nephew, said: “Through this important acquisition we are continuing to deliver on our strategic priorities to build leadership positions in the emerging markets, to supplement our organic growth through acquisitions, and to bring forward a mid-tier offering for these regions.

“Sushrut-Adler has a long and distinguished history, a reputation for quality products and a loyal customer base. Its trauma portfolio strongly complements our established positions in orthopaedic reconstruction and sports medicine in India, giving us an enhanced platform from which to continue to build a sustainable business.”

Adler employs 116 people, while approximately 50 Sushrut employees (which include an experienced sales force that directly supports the Adler business) will also transfer as part of the arrangement. Products include primarily trauma implants and instrumentation, as well as spine and limb salvage portfolios.

Meanwhile, Smith & Nephew has announced its first quarter results. The firm announced revenue for the period was $1.075bn, up 1% on an underlying basis compared to the same period last year.

Trading profit was $241m, with trading profit margin 22.4%, in-line with expectations

Olivier Bohuon, the firm’s chief executive officer, said: “Smith & Nephew has consistently delivered revenue and earnings growth together with strong cash generation in the challenging markets of the last few years.

“In light of this, and our confidence in the continued execution of our strategic priorities, we have undertaken a major review of our capital allocation framework.

“We will continue to invest in our growth products, franchises and geographies and maintain adequate headroom for further significant acquisitions.”