British engineering firm Smiths Group to sell medical unit in $2.3 billion deal

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(Reuters) – British engineering firm Smiths Group (LON:) said on Monday it will sell its medical unit for $2.3 billion including debt to U.S. private equity firm TA Associates as it focuses on its core industrial technology business.

The proposed deal, which is unanimously recommended by the board, is expected to generate $1.8 billion in net cash proceeds, Smiths Group said, adding that it plans to give shareholders’ returns on the sale.

Smiths, which makes baggage screening kit and explosive detectors that are a common sight in airports, said the proposed deal offers an additional $200 million contingent on future performance of Smith Medical.

Smiths would receive a 30% equity interest in Trulli Topco – the new holding company for the medical unit.

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