Boston Scientific Sells Units
NATICK, Mass., Nov. 5, 2007 -- Medical device manufacturer Boston Scientific Corp. today announced it is selling its Cardiac Surgery and Vascular Surgery businesses to the Getinge Group of Stockholm, Sweden, a provider of health care equipment and systems, for $750 million in cash.
Boston Scientific had previously announced its intent to sell the Cardiac Surgery and Vascular Surgery businesses as part of its plan to divest non-strategic assets and reduce its operating expenses by $475 million to $525 million in 2008. (See "Boston Scientific to Cut Jobs")
Boston Scientific acquired the 450-employee Cardiac Surgery business in April 2006 as part of its $27 billion purchase of Guidant. The San Jose, Calif.-based business develops medical technologies designed for use in surgical cardiac procedures, including beating-heart bypass surgery systems and endoscopic vessel harvesting for coronary bypass surgery, and has a manufacturing facility in Puerto Rico.
Boston Scientific acquired the Vascular Surgery business in 1995; it develops synthetic grafts and patches used to surgically treat vascular disease, including the repair of abdominal aortic aneurysms and peripheral vascular anatomy. The business has approximately 250 employees and is based in Wayne, N.J.
The combined revenues of the two businesses in 2006 were approximately $275 million, Boston Scientific said.
"Working with the talented employees of the Cardiac Surgery and Vascular Surgery businesses, our goal is to drive growth and bring new technologies to these markets, ultimately benefiting cardiac and vascular surgeons and their patients," said Johan Malmquist, president and CEO of the Getinge Group. "We are excited to complement our existing portfolio with these valuable businesses, each of which brings leading market positions and impressive product lines."
"We deeply appreciate the contributions our Cardiac Surgery and Vascular Surgery employees have made to Boston Scientific, our customers and their patients. We know they will continue to serve customers and patients well going forward," said Jim Tobin, president and CEO of Boston Scientific.
The transaction is expected to close within the next 45-90 days, subject to regulatory approvals and customary conditions, the company said.
For more information, visit: www.bostonscientific.com