Smith & Nephew plc (LSE:SN, NYSE:SNN), the global medical technology business, announces that it has completed the divestiture of its Gynaecology business to Medtronic plc (NYSE:MDT) for $350 million.
The planned sale of our Gynaecology business demonstrates our disciplined strategic approach to capital deployment. Our shareholders will benefit directly through a $300 million share buy-back programme. The divestment is expected to be broadly neutral to adjusted earnings per share ('EPSA') in 2017, after the share buy-back, and to reduce EPSA by less than 1.0¢ in 2016.
The maximum pecuniary amount allocated to the buy-back programme is $300 million and the maximum number of shares that will be purchased is estimated to be 18.3 million1 based on the prevailing share price and GBP/USD exchange rate. The buy-back programme, the purpose of which is to reduce the Company's share capital, commences today and will end no later than 31 March 2017.
Enquiries
Investors
Ingeborg Øie
Smith & Nephew
+44 (0) 20 7960 2285
Media
Charles Reynolds
Smith & Nephew
+44 (0) 20 7401 7646
Ben Atwell / Matthew Cole
FTI Consulting
+44 (0) 20 3727 1000
Notes
1. For the purpose of the draft Commission Delegated Regulation on buy-back programmes and stabilisation measures (European Commission C(2016) 1357 final) supplementing the Market Abuse Regulation (EU) No 596/2014 (MAR) Article 5, the maximum number of shares to be purchased is 20 million.
About Smith & Nephew
Smith & Nephew is a global medical technology business dedicated to helping healthcare professionals improve people's lives. With leadership positions in Orthopaedic Reconstruction, Advanced Wound Management, Sports Medicine and Trauma & Extremities, Smith & Nephew has around 15,000 employees and a presence in more than 100 countries. Annual sales in 2015 were more than $4.6 billion. Smith & Nephew is a member of the FTSE100 (LSE:SN, NYSE:SNN).
For more information about Smith & Nephew, please visit our website www.smith-nephew.com, follow @SmithNephewplc on Twitter or visit SmithNephewplc on Facebook.com.
Forward-looking statements
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