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Can activist Cevian turn Smith & Nephew around?

Recent restructures and management changes haven’t yet delivered for investors
July 10, 2024
  • Smith & Nephew shares climb on Cevian investment 
  • Spin-off or listing move could be on the table

Investors in Smith & Nephew (SN.) are desperate for a transformative change. At least that’s what the excitement surrounding a new activist shareholder seems to suggest. It was revealed last week that Sweden’s Cevian Capital – a self-styled “active ownership investment firm” – has built up a 5 per cent stake in the struggling medical equipment group. The shares have gained 10 per cent since the 4 July announcement.

With a small, albeit high-profile, roster of European holdings, including UBS (CH:UBSG) and educational publisher Pearson (PSON), Cevian has quietly become one of the region’s largest activist players. Its approach tends to be less noisy and hostile than comparable hedge funds, with a focus on operational improvements. While its plans for Smith & Nephew are as-yet unknown, recent campaigns reveal a preference for board overhauls and listing moves. 

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