>>> Smiths Group may consider selling uncompetitive businesses

Smiths Group may consider selling uncompetitive businesses

Smiths Group [LON:SMIN] Chief Executive Andy Reynolds Smith has said the FTSE-100 engineering company may consider selling some uncompetitive businesses, The Times reported. Reynolds Smith, speaking as Smiths Group released its interim results, said that having conducted a review, he has identified potential disposals among operations that generate about 30% of the group’s revenues.
The CEO said the review identified 60% of the group’s businesses had good market positions, although the group’s impending USD 710m (EUR 657m) acquisition of Safran’s [EPA:SAF] Morpho Detection business and three disposals for a combined GBP 330m changes the percentage of well positioned businesses to 70%.
Reynolds Smith said the company is considering whether its constituent businesses are competitive or have the potential to become competitive. Smiths would consider selling if the process of making a subsidiary competitive is too difficult or would take too long, the CEO added.
Reynolds Smith’s predecessor Philip Bowman had often advocated for a break-up of Smiths Group, the item said.
Smiths Group reported revenues of GBP 1.61bn (EUR 1.85bn) in the six months ended 31 January 2017.
Smiths Group’s market capitalisation stood at GBP 6.33bn at the close of trading in London on Friday, 24 March.

Link to (The Times)