UK orthopaedics group Smith & Nephew has completed the sale of its stake in medical products business BSN Medical, gaining $560 million in cash.
BSN Medical, which makes products such as bandages and splint systems for broken legs as well as items used in wound care and taking blood, was owned equally by S&N and Germany's Beiersdorf. The two partners agreed to sell the business to Montagu Private Equity last year for 1.03 billion euros ($1.23bn).
Net assets subject to disposal are $220 million and the gain on disposal will be $315 million, after transaction costs of $25 million, S&N said.
S&N will be able to use the funds to strengthen its fast-growing orthopaedics franchise through another bolt-on acquisition and/or by increased R&D investment, according to analysts, who have also suggested that the cash could also be used to offset debts at the company.