Smiths Group Divests Its Medical Division To ICU Medical In $2.4B Deal

ICU Medical Inc ICUI has agreed to acquire Smiths Group plc's Medical division in a transaction that will create an IV therapy company and simplify customer workflow.
The Smiths Medical business includes syringe & ambulatory infusion devices, vascular access, and vital care products.
When combined with ICU Medical's existing businesses, the combined entity will generate estimated pro forma revenues of approximately $2.5 billion.
Smiths will receive 2.5 million newly issued ICU Medical shares, currently valued at approximately $500 million, and $1.85 billion in cash.
Smiths will own approximately 10% of ICU Medical. It is also eligible to receive a contingent earn-out consideration of $100 million in cash.
The transaction is expected to close in 1H of 2022. In addition, at closing, a Smiths designee will be appointed to the ICU Medical board of directors.
Price Action: ICUI stock closed 1.58% higher at $205.98 on Tuesday.

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