Smiths Group’s share price (LON: SMIN) surged to a record high of 2,188p on Friday after the company announced a strategic overhaul aimed at unlocking shareholder value.
The FTSE 100 engineering firm revealed plans to streamline its operations, focusing on its high-performance industrial technologies while divesting other business units.
Smiths will retain and expand its John Crane and Flex-Tek divisions, which specialise in industrial flow and heat management technologies.
CEO Roland Carter highlighted the company’s strong financial position, stating, “We start from a position of strength and as we execute this strategy, we will become a more focused business with significant potential for future growth and value creation.”
As part of the restructuring, Smiths Interconnect, which produces broadband and antenna components, will be sold by the end of 2025.
Following this, Smiths Detection, known for its airport X-ray screening equipment, will either be sold or spun off through a UK demerger.
In addition to asset sales, Smiths is ramping up shareholder returns. The company increased its share buyback programme to £500 million, with £150 million set for completion by March 2025 and the remaining £350 million by year-end.
A large portion of the proceeds from divestitures will also be returned to shareholders, the company said.
Smiths has been under pressure from activist investors, including Engine Capital, to streamline its operations.
Searching for the Perfect Broker?
Discover our top-recommended brokers for trading and investing in financial markets. Dive in and test their capabilities with complimentary demo accounts today!
- BlackBull 26,000+ Shares, Options, ETFs, Bonds, and other underlying assets – Read our Review
- Admiral Markets More than 4500 stocks & over 200 ETFs available to invest in – Read our Review
- Hargreaves Lansdown The company's website is easily understandable and accessible to a wide range of customers – Read our Review
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
