ICU Medical Drops After Report Smiths May Walk From Deal Talks

(Bloomberg) -- Shares of ICU Medical Inc. dropped Tuesday after Sky News reported that health and technology company Smiths Group Plc may walk away from deal talks between the two companies.

Sky didn’t give a reason for why the talks might end, and said it wasn’t clear if the two sides were still in active discussions. In May, Smiths said it was in early-stage discussions about a takeover of San Clemente, California-based ICU Medical. Sky also reported that Baxter International Inc. had also expressed interest in ICU Medical, citing sources that it didn’t identify.

Shares of ICU Medical fell 3.8 percent to close at $286.10 in New York. As of Monday, the shares were up 7.5 percent since May 28, the day before Smiths announced its interest. Smiths fell less than 0.2 percent Wednesday to 1,610 pence at 8:10 a.m. in London.

Representatives for ICU Medical didn’t immediately respond to a request for comment. A Smiths spokeswoman declined to comment.

The Smiths Medical unit makes products ranging from intravenous and anesthesia technology to patient monitors. It’s the U.K. company’s largest division, with sales in the latest fiscal year of $1.21 billion, or 29 percent of the group’s total revenue.

ICU Medical makes infusion pumps for drugs, as well as other products that help administer medicine. Last year, it acquired Pfizer Inc.’s infusion systems unit for $1 billion in cash and stock in a deal that more than quadrupled its annual sales to $1.3 billion.

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