(Bloomberg) -- Smiths Group Plc’s attempt to sell its $3 billion medical-equipment unit has stalled after it failed to reach an agreement on price, people familiar with the matter said.
Several bidders dropped out of the process and are no longer actively pursuing the business, according to the people, who asked not to be identified because the information is private. Smiths Group is considering proceeding with its original plan to spin off the unit into a separate listed company, the people said, asking not to be identified because the information is private.
Shares of Smiths Group fell as much as 8% in London afternoon trading Friday, the biggest intraday decline since September 2018. They were down 6.4% at 3:19 p.m., giving the company a market of 5.7 billion pounds ($7.4 billion).
The U.K. firm had asked for binding offers in early February, Bloomberg News reported last month. Private equity firms Cinven, Platinum Equity and GTCR were competing for the business along with U.S.-listed rival ICU Medical Inc., people with knowledge of the matter have said.
Sales talks could still resume if any of the suitors tables a higher offer or the company lowers its valuation expectations, the people said. A representative for Smiths Group declined to comment.
Smiths Group’s medical unit makes devices such as patient monitors and drug-delivery systems that are used in ambulances, hospitals and care homes. The U.K. industrial conglomerate has been planning to offload the business to focus more on its core operations, which span industrial, security and defense equipment.
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