Smith & Nephew to Sell Gynecology Business to Medtronic--Update
May 18 2016 - 09:59AM
Dow Jones News
By Ian Walker and Joshua Jamerson
Medtronic PLC said it agreed to buy Smith & Nephew PLC's
gynecology business for about $350 million, expanding the firm's
minimally invasive surgical portfolio and adding to its existing
gynecology business.
Smith & Nephew said it would return the net funds from the
sale to shareholders in a share buyback program. The global medical
technology company said it expects to complete the sale in July and
will start a $300 million share buyback program shortly after.
The gynecology business generated $56 million revenue in 2015,
which represented about 1% of the group's total. Smith & Nephew
expects the deal to be broadly neutral to adjusted earnings in
2017.
Medtronic, which sells medical devices and surgical tools, said
Smith & Nephew's key medical technology is its Truclear system,
used to remove abnormal uterine tissue. It is a less invasive
treatment to other surgical procedures such as a hysterectomy,
Medtronic said, and a Truclear procedure can be performed as an
outpatient procedure.
Medtronic said the deal is expected to have no effect on
earnings in fiscal year 2017 and add to profits thereafter.
Shares of Medtronic have risen 7.8% over the past three months
and were inactive in premarket trading in New York.
(END) Dow Jones Newswires
May 18, 2016 09:44 ET (13:44 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Smith and Nephew (NYSE:SNN)
Historical Stock Chart
From Feb 2024 to Mar 2024
Smith and Nephew (NYSE:SNN)
Historical Stock Chart
From Mar 2023 to Mar 2024