Smith & Nephew (NYSE:SNN) said today that it closed the $350 million sale of its gynecology business, including the Truclear hysteroscopy system, to Medtronic (NYSE:MDT).
The London-based healthcare giant also made good on its promise to put $300 million of the proceeds toward a stock buyback plan.
Smith & Nephew has said it expects most of the gynecology unit’s employees to join Medtronic after the deal, which was announced in May. The Truclear device put up sales of $56 million last year, or just more than 1% of SNN’s total revenues; the company said said in May that it plans to make the Truclear device for Medtronic during the transition.
The sale, after the roughly 18.3 million-share buyback closes by the end of March 2017, isn’t expected to affect adjusted earnings per share next year but could put a 1¢ hit on adjusted EPS this year, Smith & Nephew said.
Fridley, Minn.-based Medtronic has said it expects the deal to be neutral to earning in fiscal 2017 and to add to earnings after that.
