Smiths to engineer spin-off

SMITHS GROUP is looking to spin off its medical devices business, two months after a £7billion merger with America’s ICU Medical collapsed.

The FTSE 100 conglomerate has suffered losing contracts in the US and having its products temporarily suspended in Europe due to new EU regulation. Chief Andrew Reynolds Smith said separating the medical arm, which has more than 8,000 employees and annual sales of £885million, would enable Smiths to focus on industrial technology.

He added: “Smiths Medical is well positioned to capitalise on its leadership positions.”

Shares rose 69p to 1384p.