Smith & Nephew share price: Firm acquires Russian manufacturing business
Smith & Nephew Plc (LON:SN) today announced the acquisition of Russian distribution and manufacturing business, DeOst.
The acquisition adds DeOst’s trauma and orthopaedics business and an established distribution network to Smith & Nephew’s existing Russian operations. 350 new employees will now be added to the company’s payroll.
“Smith & Nephew has grown its business in Russia since 2005,” Smith & Nephew chief executive Olivier Bohuon commented. “This investment, in-line with our strategy to build our platform in the Emerging Markets, significantly boosts our local presence and prospects and will enable us to take advantage of market dynamics and better serve Russian customers.”
The financial terms of the deal have not been disclosed.
Smith & Nephew’s share price had edged 0.72 percent higher to 1,122.00p as of 08:17 BST today, just below the FTSE 100 which was up about one percent. The company’s stock has appreciated more than 10 percent on an annual basis.
The move was prompted by recent changes to Russian state tenders, aimed at supporting local manufacturers.
DeOst has been the distributor of Smith & Nephew products in Russia for the past six years.
However, rising tensions between the West and Russia have made it increasingly difficult for foreign companies to maintain a presence in the country.
As of 09:13 BST, Friday, 10 July, Smith & Nephew plc share price is 1,119.50p.