Medtronic Buys Smith & Nephew’s Gynecology Business For $350M
Medtronic expanded its minimally invasive therapy portfolio on Wednesday with a deal to buy Smith & Nephew’s gynecology business for $350 million.
London-based Smith & Nephew’s gynecology portfolio most notably includes the Truclear system, a device used in the removal of polyps and fibroids from the uterus. Truclear is a commonly used in the treatment of abnormal uterine bleeding, which affects 100 million women worldwide, and in hysterectomy procedures throughout the U.S. and parts of Europe where the product is available.
“We believe gynecology is one of the most underserved specialty procedure areas,” said Chris Barry, president of Medtronic’s surgical innovations business and minimally invasive therapies group. “This acquisition expands our existing portfolio and we believe creates opportunities to further explore and develop global therapies and solutions that improve surgery.”
Smith & Nephew’s Truclear device had sales of $56 million last year. The English company said most of its gynecology employees are expected to join Medtronic as part of the deal. Additionally, Smith & Nephew will continue to manufacture the Truclear system for Medtronic during the transitional period.
“The quality of the business was reflected by the strong interest from potential buyers, allowing us to obtain an attractive valuation,” Olivier Bohuon, Smith & Nephew’s CEO, said in a statement. “[The gynecology unit] and its employees will benefit from a new owner with a synergistic platform looking to take the business to the next level.”
The acquisition is expected to close this summer, Medtronic said. The net impact from the transaction is believed to be earnings neutral in Medtronic’s 2017 fiscal year and accretive to earnings thereafter.