Smith & Nephew shares surge as Cevian acquires stake in medical devices group Author: Investing.com

Investing.com — Shares of medical equipment maker Smith & Nephew (LON:) rose on Thursday after activist investor Cevian Capital revealed it had a stake in the group.

Stockholm-based Cevian has acquired a 5% stake in Smith & Nephew, a maker of orthopedic implants and prosthetics whose shares have more than halved since hitting a record high in 2020, the documents show.

Changing purchasing practices in China, as well as a series of management changes, have strained sentiment around Smith & Nephew. Revenue of $1.39 billion in the fiscal first quarter of the 100-listed companies missed estimates.

Reuters, citing a statement from a partner at Cevian, reported that the investor sees the potential to create “long-term value” in Smith & Nephew by improving the company’s operating results.

Cevian has also acquired stakes in a number of companies, including Swiss bank UBS, Irish construction materials company CRH (NYSE:) and educational publisher Pearson.