Smiths Group chief stands down with immediate effect

Andy Reynolds Smith has stepped down as the chief executive of Smiths Group in a surprise move as the UK industrial conglomerate aims to enter a growth phase once it has spun off its medical business.

Paul Keel, who has worked in senior roles at 3M for 16 years, has taken over with immediate effect at the helm of the engineering group that was crucial to the UK’s efforts to produce its own ventilators during the peak of the first wave of coronavirus.

The move was “mutually agreed” between the board and Reynold Smith, who had been in charge of the company since 2015 and will continue to be available until the end of the fiscal year at the end of July.

Globally, industrial groups have come under investor pressure to streamline or simplify their portfolios. Smiths, which makes products ranging from oil pipeline seals to airport scanners, was no exception, deciding in 2019 to spin off its medical business.

The split was delayed because of the pandemic but the board said it “remains committed to the separation of Smiths Medical”, which the company previously said it aimed to complete by the end of July.

Smiths is hoping to grow as swaths of the economy put a greater focus on safety and hygiene, as well as snapping up opportunities to provide engineering to next-generation technologies such as low earth satellites.

Keel’s “international experience positions him well to build on the progress made during Andy’s tenure and allows Smiths to deliver on its significant potential as it enters its next growth phase”, said Sir George Buckley, chair of Smiths Group.