Analyst Note| Denise Molina, CFA |
We were not too surprised at the announcement of Paul Keel as the new CEO of Smiths Group as there had been press reports early in 2020 that a CEO change was possible, and as Keel comes from 3M, where Smiths Group Chairman George Buckley was himself CEO for seven years. We view Buckley as an active chairman and strong voice on strategy within the group's board and executive teams. His letters in the group's annual reports have in the past outlined a framework for growth for the company, with an emphasis on reinvestment in research and development to drive product introductions and aiming to grow at above-market rates. Nevertheless, Smiths Group continues to struggle with consistent growth, or even gross domestic product plus growth, due to the disparate investment cycles of its diverse end markets.