Shocking the Markets
These are the Roger Hurn years. A large evolutionary change is the decision to abandon two of the original core businesses—motor and clocks/watches—shocking the City, and leading to job losses. Yet Smiths emerges significantly stronger. With a long-standing management team, Hurn emphasizes: (i) cash generation; (ii) shareholder value (with a commensurate decline in paternalism, commenced under his predecessor); and (iii) M&A activity, under a simple model, with profits each year split between shareholders, reinvestment, and bolt-on acquisitions. The medical division becomes more efficient and profitable, growing also by acquisition, while various non-core businesses are sold off. A major advance is the 1987 acquisition of various Lear Siegler businesses, propelling Smiths to tier-1 supplier status at Boeing. With the industrial division also boosted by acquisition, Hurn assembles his ‘three-legged-stool’ of aerospace, medical, and industrial
Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.
If you think you should have access to this title, please contact your librarian.