Montagu Private Equity (Montagu) has today signed an agreement to acquire the 50/50 joint venture BSN medical, Hamburg, from its parents Smith & Nephew plc London ("Smith & Nephew") and Beiersdorf AG, Hamburg ("Beiersdorf") for € 1.030 billion. This agreement is conditional upon competition clearances being received. Final completion of the sale is expected in the first quarter of 2006.

BSN medical is a leading global player in the professional medical products market for general wound care, non-invasive orthopaedics and phlebology. It was established in April 2001 to combine the former casting and bandaging, general wound care and phlebology business of Beiersdorf and Smith & Nephew. BSN medical has manufacturing facilities in Germany, France, Ireland, Mexico, Pakistan, South Africa, the UK, and the US. It operates in 25 countries, employs approx. 3,400 staff and is expecting revenues of € 525 million for 2005.

Denis Leroy, Head of European Investment at Montagu commented: "This represents another exciting investment for Montagu; backing a top quality business and first rate management team. The BSN management has an impressive track record of developing the business and improving margins over the last few years, and has proven its ability to acquire and successfully integrate strategically attractive companies. We look forward to supporting the management team and employees in pursuing the growth strategy. BSN medical is the first investment from our new fund, Montagu III, which we closed in summer 2005 with EUR 2.3 billion"

Graham Siddle, CEO of BSN medical added: "Over the past four years Smith & Nephew and Beiersdorf have supported us as we developed becoming a major global leader in professional medical products. This is just the start. With the support of Montagu we look forward to realising the full potential of growth opportunities for BSN medical. Our business portfolio is well suited for selective bolt-on acquisitions and our existing distribution network will benefit from new product launches in adjacent and existing markets."