Smith & Nephew to Sell Gynecology Business to Medtronic--Update

By Ian Walker and Joshua Jamerson 

Medtronic PLC said it agreed to buy Smith & Nephew PLC's gynecology business for about $350 million, expanding the firm's minimally invasive surgical portfolio and adding to its existing gynecology business.

Smith & Nephew said it would return the net funds from the sale to shareholders in a share buyback program. The global medical technology company said it expects to complete the sale in July and will start a $300 million share buyback program shortly after.

The gynecology business generated $56 million revenue in 2015, which represented about 1% of the group's total. Smith & Nephew expects the deal to be broadly neutral to adjusted earnings in 2017.

Medtronic, which sells medical devices and surgical tools, said Smith & Nephew's key medical technology is its Truclear system, used to remove abnormal uterine tissue. It is a less invasive treatment to other surgical procedures such as a hysterectomy, Medtronic said, and a Truclear procedure can be performed as an outpatient procedure.

Medtronic said the deal is expected to have no effect on earnings in fiscal year 2017 and add to profits thereafter.

Shares of Medtronic have risen 7.8% over the past three months and were inactive in premarket trading in New York.

(END) Dow Jones Newswires

May 18, 2016 09:44 ET (13:44 GMT)

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