- Engineering group Smiths said it had been agreed to sell is medical business to ICU Medical for $2.4 billion, with the bidder having trumped a rival $2.0 billion offer from TA Associates.

Smiths said said the offer valued the medical business at $2.7 billion when its debt was included (its 'enterprise value') plus an additional $0.1 billion contingent on future share-price performance.

The company added that it expected to receive initial net cash proceeds of $1.85 billion (£1.34 billion), about $50 million more than under the TA transaction.

Smiths also would receive 2.5 million new ICU Medical shares, worth $0.5 billion at ICU Medical's closing share price on 7 September of $205.98.

Smiths said it was planning to return 55%, equivalent to £737 million at current exchange rates, of the initial net cash proceeds to shareholders via a share buyback.

The retained net cash proceeds would be used to create 'a strong balance sheet' and support investment in growth opportunities

'The sale of Smiths Medical simplifies and positions Smiths for focused growth in its core industrial technology business,' the company said.

Completion and receipt of the initial cash proceeds was expected in the first half of calendar year 2022, subject to approval by Smiths' shareholders and customary regulatory approvals. Story provided by