M&A: Smith & Nephew looks to make moves (press release)
British medical device company Smith & Nephew is still on the hunt for merger & acquisition deals
Smith & Nephew is on the hunt for buyout candidates, according to CEO Olivier Bohuon, ranging from a “bolt-on acquisition at $10 million to something much more significant.”
Armed with $221 million in cash and equivalents as of June 30, the British medical device company has plenty of dry powder on hand to make its move. And Bohuon said Smith & Nephew “will borrow for the right acquisition” during a conference call yesterday.
Smith & Nephew has been actively seeking products to expand its current product offerings in minimally invasive surgery, he added.
SNN has been realigning for more than a year to focus growth on the emerging markets of Brazil, Russia, India and China, while creating a more streamlined operation in its existing markets. Those moves appear to be working for the company’s bottom line.
Smith & Nephew posted 2nd-quarter profits of $292 million, or 33¢ per share, on sales of $1.03 billion for the 3 months ended June 30. That’s a bottom-line increase of 90.8%, despite a top-line slip of 4.5%.
Adjusted to exclude 1-time items, EPS reached 18.1¢, just beating the 17.8¢ consensus estimate on Wall Street.
SNN shares gained 1.9% yesterday on the news and added half a point to that today, hitting a 52-week high of $53.50 on the way to a $52.73-per-share close on The Street and a £6.73 close in The City (where SN shares also hit a yearlong high of £6.87).