Smiths Medical Searching for New CEO while Demerging from Smiths Group
IV Pump News March 28, 2019
Smiths Medical is searching for a new CEO to lead its impending transition from subsidiary of Smiths Group to a free-standing publicly traded company by July 2020.
Smiths Medicals’ executives announced on Friday, March 22 the President and CEO, Chris Holmes, resigned effective December 31. With the looming demerger from Smiths Group, Holmes felt it was time for a change and Smiths Medical needed someone to take it forward for the long term.
Smiths Medical is known for its line of hospital and outpatient infusion pumps such as the CADD and Medfusion series pumps. After years of underinvestment, the focus recently has been on investing in research and development to keep a fresh product catalog and stave off pricing pressure on older products. Smith emphasized that the medical group has been launching new products as a result of its investments, but it needs more corporate flexibility. The separation will create two stronger, industry-leading companies, and Smiths Medical will be able to deliver its full potential as a medical device company.
The demerger from Smiths Group comes after multiple failed attempts to secure a buyer for the maker of infusion pumps, patient-warmer systems and related single-use consumable supplies. Last year Smiths Medical and ICU Medical failed to agree to terms on a $3.6 million cash-and-stock deal. Smiths Group Chief Executive Andy Reynolds Smith says "we've got a great plan here. These will be stronger companies that can accelerate their progress and create value," Smith told investors. But, "our responsibility is to continue to keep our eyes open to opportunities to do even better, and we continue to do that." The board still remains open to other opportunities as the separation continues.
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