Bristol-Myers Sheds Unit
NEW YORK, Dec. 17, 2007 -- Bristol-Myers Squibb Co. announced today it will sell its medical imaging subsidiary to private equity firm Avista Capital Partners for $525 million.
Bristol-Myers said it will sell Bristol-Myers Squibb Medical Imaging (BMS MI) and reinvest the cash in research and development. The company announced Dec. 5 that it intended to divest the business, which supplies imaging products for nuclear and ultrasound cardiovascular diagnostic imaging procedures and is based in North Billerica, Mass., as part of a company restructuring plan.
"As Bristol-Myers Squibb continues to focus on evolving into a next-generation biopharma company, we determined the best way to maximize the value of Medical Imaging for shareholders was to sell this business and reinvest the proceeds into our pharmaceutical research, development and commercialization efforts," said James M. Cornelius, CEO, Bristol-Myers Squibb.
Also in the Dec. 5 statement, Bristol-Myers said it would close more than half of its manufacturing plants and reduce its work force by 10 percent over the next three years in an effort to save $1.5 billion in costs by 2010. The company also plans to reduce its portfolio of older products by 60 percent over the next four years and is considering options for its ConvaTec and Mead Johnson businesses.
The Bristol-Myers purchase is New York-based Avista's second health care industry acquisition in less than a week. The company announced Dec. 13 that it will acquire Boston Scientific's Fluid Management and Venous Access businesses for $425 million.
The Bristol-Myers transaction is expected to be completed by the end of January 2008 and is subject to customary regulatory approvals. After the sale, BMS MI will operate as an independent company under a new name and its CEO will be Don Kiepert, the founder and former chairman, CEO and president of Point Therapeutics.
For more information, visit: www.bms.com
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