Smith & Nephew Seeks a Boost in Russia Through Acquisition

The purchase of a Russian distribution and manufacturing business allows S&N to get closer to its customers there, Smith & Nephew executives say.

Chris Newmarker

Smith & Nephew  said Friday that it has acquired the trauma and orthopaedics business of DeOst LLC, as well as DC LLC, a manufacturing company in the DeOst group.

Financial terms of the deal were not disclosed.

DeOst has been a Russian distributor for Smith & Nephew since 2009. Smith & Nephew says the acquisition will bring it closer to its Russian customers, helping the British medtech multinational better understand their needs.

DC has local manufacturing capability to make mid-tier trauma products. This will allow Smith & Nephew to reach more Russian customers, especially after recent state tender-related changes meant to support Russian-produced products.

"Smith & Nephew has grown its business in Russia since 2005. 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," Smith & Nephew CEO Olivier Bohuon said in a news release.

About 350 new employees have joined Smith & Nephew through the acquisition.

Smith & Nephew in recent years has been engaged in a global effort to enhance efficiency and reduce costs.

Smith & Nephew was considered an acquisition target until July 2014, when Bohuon announced the company was not interested. When he arrived in 2011, Bohoun said Smith & Nephew would shift its emphasis from hip and knee replacements to wound care, one of its oldest businesses.

Chris Newmarker is senior editor of Qmed and MPMN. Follow him on Twitter at @newmarker.

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