Smiths Group to Acquire Medex for $925 Million

In a move expected to boost the company into the medical devices big league, Smiths Group (London, UK) has agreed to acquire Medex, Inc. (Carlsbad, CA, USA) for U.S.$625 million in cash and will also assume around $300 million of Medex's net debt. Smiths Group is the parent of Smiths Medical (also in London).

Medex is a leading supplier of infusion equipment used in critical care, specializing in intravenous infusion catheters that prevent needle-stick injuries. The company's products are complementary with those of Smiths Medical, a leading supplier of devices used during critical and intensive care, anesthesia, surgery, postoperative care during recovery, and home-infusion therapy. For example, Medex's devices that help prevent needle-stick injuries caused by "sharps” are aligned in the market with Smith's Needle-Pro range of safety devices.

The acquisition of Medex is expected to increase the sales of Smiths Medical by around one-third and profits by almost one-half. In 2004, Medex is expected to achieve sales of $330 million. Smiths Medical had sales of $853 million for the year ended July 31, 2004.

"Medex is a first rate company, is an excellent strategic fit, and we have secured it at a good price,” commented Keith Butler-Wheelhouse, chief executive of Smiths. "This transaction is a significant step in the continuing evolution of Smiths, and moves us into the medical devices big league.” In addition to medical products, Smiths Group is involved in aerospace, detection, and specialty engineering.




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