Engine Capital urges Smiths Group to commit to strategic alternatives process

Engine Capital, a meaningful shareholder of Smiths Group (SMGZY), sent a letter calling on the company’s Board of Directors to publicly commit to a strategic alternatives process aimed at a sale to maximize value for shareholders. Main points include: 1) Smiths Has Persistently Traded at a ‘Conglomerate Discount’ to its Sum of the Parts and its Segment-Level Peers Despite Strong Financials and Operating Performance, 2) Believes a Sale of the Entire Company or its Four Businesses Could Deliver a Significant Premium to Smiths’ Current Share Price, 3) Cautions the Board and New CEO Roland Carter Against Pursuing Material Acquisitions While Maintaining its Conglomerate Structure.