Smiths Medical is engaged in the development of specialised medical devices and consumables, which are used in hospitals, ambulances, homes and speciality care environments
Trulli Bidco, a wholly-owned subsidiary of funds advised by TA Associates, has agreed to acquire Smiths Medical for an enterprise value of $2.3bn.
The deal also includes an additional $200m payment, which will be contingent on the future performance of Smiths Medical, a division of Smiths Group.
Smiths Medical is engaged in the development of specialised medical devices and consumables, which are used in hospitals, ambulances, homes and speciality care environments.
The company’s devices are used during critical and intensive care, surgery and post-operative care, in addition to supporting chronic illnesses.
Its product portfolio consists of infusion systems to provide medication for treating chronic conditions and vascular access products to protect healthcare workers and patients from both needlestick injury and hospital-acquired infection.
In addition, the company offers vital care products to efficiently manage patient airways before, during and after surgery.
With operations in over 30 countries, Smiths Medical markets its products in more than 120 countries.
Smiths Group CEO Paul Keel said: “This transaction positions Smiths as a more focused industrial technology company with compelling opportunities for growth, a common operating model and shared purpose.
“Delivering on our commitment to separate, the sale captures immediate value for Smiths’ shareholders and positions us well for further value creation through our retained 30% ownership in Smiths Medical as well as potentially $0.2bn additional consideration, contingent on future performance.”
Subject to approval by Smiths’ shareholders and receipt of other customary regulatory approval, the deal completion and receipt of the initial cash proceeds are expected by the end of this calendar year.
Smiths is expecting to receive net cash proceeds of up to $1.8bn, following the completion of the proposed deal.
The company intends to use the proceeds from the deal to make investments in growth and facilitate a significant return of capital to shareholders.
Under the terms of the agreement, Smiths will also receive a 30% stake in Trulli Topco (Topco) valued at $200m. Topco will be the new holding company of Smiths Medical.