Smith & Nephew could sell woundcare unit; KCI, Coloplast tipped to bid - report
09 APR 2018
Smith & Nephew [LON:SN], the UK-based medical devices group, could seek a buyer for its wound care business, The Daily Telegraphreported, citing a City source. The unidentified source said they would expect a bid battle to emerge among trade bidders such as San Antonio, Texas-headquartered KCI (Acelity) and Denmark-based Coloplast (named Chloroplast in the report).
Smith & Nephew remains a potential target for a full takeover, the source said, tipping US competitors Medtronic [NYSE:MDT], Johnson & Johnson [NYSE:JNJ] and Stryker [NYSE:SYK] as possible acquirers.
Morgan Stanley analyst Michael Jungling suggested Smith & Nephew is unlikely to sell its wound care operation as that market is very attractive for the business. The hip and knee unit which forms part of Smith & Nephew’s orthopaedics arm is a more likely candidate for disposal, the analyst said, pointing out that the company is not among the most significant players in that market.
Smith & Nephew announced last week that Namal Nawana will take over when chief executive Olivier Bohuon retires in May. A person with close links to the business noted Nawana’s history of successfully seeking out M&A deals, the report said.
The original article appeared in print; Page 4 (Business & Money section)