Smith & Nephew Forms Joint Venture With Beiersdorf

Smith & Nephew plc and have announced the creation of a global joint venture that will combine their traditional woundcare, casting, bandaging and phlebology businesses and have pro forma annual sales in excess of £300m.

Smith & Nephew has also agreed to acquire the advanced woundcare business of Beiersdorf for £30m in cash.

The transactions are inter- conditional.

It is planned that the joint venture will commence operations on April 2. The joint venture will be 50% owned by each parent company.

It will be independently managed by a team drawn from both parents led by Chief Executive, Graham Siddle, who until recently was Group Commercial Director of Smith & Nephew.

Profits will be shared equally between Smith & Nephew and Beiersdorf.

Smith & Nephew is a world leader in the provision of advanced woundcare products.

The acquisition of Beiersdorf’s complementary advanced woundcare business will provide it with critical mass in certain key markets, particularly in Germany.

Chris O’Donnell, Chief Executive of Smith & Nephew, said: “Our joint venture with Beiersdorf creates a leading independent, global supplier of high quality healthcare products. We expect it to generate real value for the parent companies from its enhanced focus. Our acquisition of Beiersdorf‘s advanced woundcare business strengthens our offering in advanced woundcare and brings a number of excellent products and brands to our range.” Smith & Nephew is a leading worldwide medical devices company with a highly successful track record in developing, manufacturing and marketing a wide variety of innovative and technologically advanced tissue repair products.

These products are primarily in the areas of bone, joints, skin and other soft tissue.

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