Smith & Nephew Sells Its Gynecology Business for $350 Million

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Smith & Nephew recently announced that it will sell its gynecology business to Medtronic for $350 million.  As part of the sale, Medtronic will obtain Smith & Nephew’s key gynecological surgical solution, called the TRUCLEAR System.  The System is a medical technology platform used to remove abnormal uterine tissue such as polyps and fibroids for diagnostic biopsy.  According to Smith & Nephew’s press release, the TRUCLEAR System generated about $56 million in revenue in 2015, which represented approximately 1% of Smith & Nephew’s total revenues.

Regarding the decision to sell its gynecology business, Olivier Bohuon, CEO of Smith & Nephew,  stated:

Smith & Nephew’s management team has a strong track record of creating value through organic growth and by acquisition. The sale of our Gynaecology business demonstrates our disciplined strategic approach to capital deployment and to crystallising value through divestiture at the right time.

The quality of the Gynaecology business was reflected by the strong interest from potential buyers, allowing us to obtain an attractive valuation. Our shareholders will benefit directly from the return of the proceeds through a share buy-back programme, in-line with our capital allocation framework. Gynaecology and its employees will benefit from a new owner with a synergistic platform looking to take the business to the next level.

Smith & Nephew completed five acquisitions in 2015, primarily focusing on robotic surgery and sports medicine.  For example, in October of 2015, Smith & Nephew announced that it would acquire Blue Belt Holdings, Inc. for $275 million to secure its position in the orthopedic robotics-assisted surgery.

Keith Lim
Keith Lim is an associate in the firm's Orange County office. Mr. Lim practices intellectual property law, with a focus on patents. He worked at Lockheed Martens Corporation as an inventor, where he graduated from their leadership program, completed his Master’s degree, obtained a patent award, and became the youngest member of the Patent Review Board. His experiences involved FPGA firmware coding, system architecture for transceivers, RF path analysis, Matlab simulation coding for sonar systems and a space fence, and hands-on integration and test. He also worked for BAE Systems, Bell-Labs, and Micron Technology. Before attending law school, Mr. Lim worked for a law firm in Korea in their international department. During law school, he served as a notes editor in the Michigan Telecommunications and Technology Law Review. Mr. Lim joined the firm in 2015.
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