Smith & Nephew's $782M Healthpoint buyout raises eyebrows
Smith & Nephew announces a $782 million acquisition for wound care products maker Healthpoint Biotherapeutics, a move that generated mixed reactions for analysts.
Healthcare giant Smith & Nephew (FTSE:SN, NYSE:SNN) today announced a $782 million cash bid to acquire wound care products maker Healthpoint Biotherapeutics, a move that sparked mixed reactions from Wall Street.
Although analysts lauded the purchase, they also cast a wary eye on the price tag.
"Although this deal seems to be strategically important, the market will look at the valuation, which at 4.1 times revenues and 71 times EBIT will be seen as rich," British investment firm Panmure Gordon wrote in a note to investors.