Sprawling Smiths Group looks to divest as it refocuses

Fri, 24 Mar 2017 | BUSINESS SALE

Engineering and tech giant Smiths Group could sell off its underperforming businesses as the sprawling conglomerate, which makes everything from medical devices to narcotics sensors, looks to lose some excess baggage.

Speaking to the Times, Smiths’ chief executive Andy Reynolds Smith said the company had “gone through a process of identifying what makes a Smiths business” and had earmarked companies representing 30 per cent of annual group revenue that could be divested.

The company has just published strong financial results for the six months to 31 January 2017, posting an 18 per cent jump in revenue to £1.62 billion, driven by a lower sterling exchange rate.

“We have looked at businesses to see whether they are competitive or can become competitive,” Reynolds Smith was quoted as saying. “We are looking at how long or how hard that could take and if it’s too hard or too long we will look at potentially divesting them.”

Smiths Group has a wide array of businesses and a colourful history, having started off life in 1851 as a jewellery shop in south London before, among other things, adapting a speedometer as a ‘sledge-meter’ for Robert Scott’s epic expedition to the South Pole in 1911 and providing instruments for a World War I bomber used to make the world’s first direct transatlantic flight.

Today the company employs around 22,000 people in more than 50 countries and has five divisions - John Crane, Smiths Medical, Smiths Detection, Smiths Interconnect and Flex-Tek.

Reynolds Smith, who has been chief executive for 18 months, said his review of the business had identified 70 per cent of Smiths’ businesses performing well in their markets.

The chief executive said the company’s growth plans would not be based on acquisitions. “Organic growth is the key for us and we are increasing our R&D spending in innovation,” he said.

Find engineering businesses for sale.
You can subscribe here


Share this article



Latest Businesses for Sale

IT Infrastructure Solutions
London, South East, UK

An award-winning company with an excellent reputation within the industry. Reputation in the market for high-quality, state-of-the-art tailored products and services. Offers invited.

Asking Price: Offers Invited
Turnover: £3,600,000

Cyber Security Systems
South of England, UK Wide

Provider of in-depth cyber security consultancy and solutions with ten years' experience within the industry. Offers invited.

Asking Price: Offers Invited
Turnover: £1,800,000

Graphic, Print & Web Design
South of England, UK Wide

Multi-discipline design agency creating bespoke literature including brochures, catalogues, newsletters & prospectuses, as well as designing clients’ websites, alongside e-commerce solutions. Offers invited.

Asking Price: Offers Invited
Turnover: £438,000


View more businesses for sale

News Search

Latest News

 
21
 
Mar
 

Kent Logistics provider completes a successful acquisition | BUSINESS SALE

A Kent-based personalised logistics provider, backed by Livi...

 
20
 
Mar
 

Warrington construction company enters administration | ADMINISTRATION

A prominent construction business headquartered in Orford Gr...

 
19
 
Mar
 

Prominent stationery supplier enters administration | ADMINISTRATION

Another British high street retailer has fallen victim to th...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
30
 
Sep
 

Smiths Group plan to make further acquisitions | BUSINESS NEWS

Engineering and technology conglomerate, Smiths Group could ...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources