Smith & Nephew concludes £240m disposal

MEDTECH Smith & Nephew has signed a deal to sell its Gynaecology business to Medtronic for £240m ($350m).

The group, whose UK orthopaedics operation is based at Warwick Technology Park, said the Gynaecology division had been rapidly built around its resection technologies.

The division comprises, primarily, the Truclear System for the hysteroscopic resection and removal of uterine tissue. Gynaecology delivered revenues of £38m ($56m) in 2015, representing a little over 1% of group revenue.

Smith & Nephew said Gynaecology and its employees would benefit from increased focus and presence in the gynaecology space, including broadening the products and services available to customers. The acquisition strongly complements Medtronic’s existing portfolio.

The proceeds, which are surplus to Smith & Nephew’s current near-term capital requirements, will be returned to shareholders through a £205m ($300m) share buy-back programme. This is expected to begin shortly after the deal’s completion in July 2016.

Olivier Bohuon, Chief Executive Officer of Smith & Nephew, said: “Smith & Nephew’s management team has a strong track record of creating value through organic growth and by acquisition. The sale of our Gynaecology business demonstrates our disciplined strategic approach to capital deployment and to crystallising value through divestiture at the right time.”

Davis Polk & Wardwell served as counsel to Smith & Nephew and Ondra Partners acted as financial advisor.
 

Churchill China benefitting from new products

Stoke-on-Trent pottery firm, Churchill China has said it continues to benefit from new products and replacement business.

Alan McWalter, chairman, told shareholders at the firm’s AGM that the current year had begun well and the company was making good progress against its objectives.

“We continue to achieve growth in sales from a combination of our new product ranges and from replacement business on our extensive installed product base. As a result we continue to anticipate that we will meet our target performance levels for the year as a whole,” he said.

Senior director steps down at Hill & Smith

A well-known figure from the West Midlands manufacturing sector has retired as a director from Shirley-based engineering group, Hill & Smith Holdings.

Clive Snowdon, a former chief executive of Warwickshire aerospace supplier Umeco, stood down at the conclusion of the group’s AGM, having initially joined the business in 2007.

During his time with the business, Mr Snowdon served as both the Senior Independent Director and as chairman of the Remuneration Committee.
 
Following Mr Snowdon’s retirement, Jock Lennox has assumed the role of Senior Independent Director and Annette Kelleher has assumed the role of chairman of the Remuneration Committee.

Commenting on Mr Snowdon’s retirement, Bill Whiteley, chairman of Hill & Smith Holdings said: “Clive has provided invaluable counsel in the transformation of the group during his tenure and a search is underway for his replacement. Clive leaves us with our thanks and best wishes for the future.”