Smith & Nephew CEO rejects break-up in favour of growth via acquisitions
05 JAN 2019
Smith & Nephew’s [LON:SN] recently installed chief executive, Namal Nawana, has opted against breaking up the UK-based medical devices group, The Times reported. Nawana said he has conducted a review of the company in his eight months at the helm and decided focusing on growth and efficiencies as an independent business would create value for its shareholders.
The CEO went on to say that Smith & Nephew is financially well positioned for M&A deals, whether initial bolt-on acquisitions or larger transactions in the future, the item reported. He pointed to the company’s robust balance sheet, with 0.9 times leverage.
Smith & Nephew has a GBP 12.5bn (USD 15.9bn) market cap.
The group could seek to expand its orthopaedics operations into spinal, shoulder, foot and ankle surgery or grow its ear, nose and throat business, the report said.
The US activist investor Elliott Advisers is rumoured to have been pressing Smith & Nephew to make disposals and thus increase its potential attractiveness as a takeover target, the report said.