Smiths Group (LON:SMIN) is looking to spin off its healthcare business and focus entirely on industrial tech after a failed $9.1 billion merger with ICU Medical (NSDQ:ICUI), according to a Reuters report.
The company has considered a number of different options for the medical business, including a sale or separate listing, CEO Andy Reynolds said on a company call, according to the report.
Smiths Medical was valued at approximately $3.7 billion (£2.8 billion) based on a slight discount, according to Liberum analyst Ryan Gregory, Reuters reports.
“Preference would be if they could find someone to buy the business, purely because they can be cash rich and re-deploy and invest elsewhere … clearly it is better off being managed by someone else,” Gregory told Reuters.
Teleflex (NYSE:TFX) and B. Braun could be considering picking up Smiths Medical, according to the report, though neither company has responded to a request for comment. ICU Medical also hasn’t commented on possibly reconsidering an acquisition.
While Smiths Medical accounts for more than a quarter of the company’s total revenue, those numbers fell 2% for its fiscal year ended July 31. Despite the fall, CEO Reynolds believes that “it is a very valuable business in its potential,” according to Reuters.
In September, Smiths spiked its merger talks with ICU Medical after rejecting a nearly $4 billion offer.