Bayer HealthCare sells Interventional Division to Boston Scientific

The transaction values the business at $415 million

Kelsey Kaustinen
NATICK, Mass.—Medical technology company Boston Scientific Corporation has announced a definitive agreement under which it will acquire Bayer HealthCare’s Interventional Division for $415 million in cash, including fees for transitional services. Per the terms of the agreement, Boston Scientific will pay Bayer $415 million up front. The transaction has an expected closing date of the second half of this year, subject to customary closing conditions, including relevant antitrust clearance.
 
Boston Scientific expects the acquisition of Bayer Interventional, which saw sales of roughly $120 million last year, to improve its access to a number of segments in the peripheral vascular disease space, including atherectomy (surgical removal of plaque from blood vessels) and thrombectomy (surgical removal of blood clots). The sale includes the AngioJet and Jetstream systems, products for the thrombectomy and atherectomy fields respectively, and the Fetch 2 Aspiration Catheter, which is used in cardiology, radiology and peripheral vascular procedures. Once the transaction is complete, Bayer Interventional will become part of the existing Boston Scientific Peripheral Interventions business.
 
“The addition of Bayer Interventional will expand our commercial footprint and enhance our ability to provide physicians and healthcare systems with a complete portfolio of solutions to treat challenging vascular conditions,” said Jeff Mirviss, president of Peripheral Interventions for Boston Scientific, commented in a statement. “We believe this acquisition will accelerate the growth of our Peripheral Interventions business and strengthen our position as a global leader in peripheral therapies.”
 
“We expect this acquisition will help fuel continued growth for the company and we are looking forward to welcoming the team from Bayer Interventional to Boston Scientific,” added Mike Mahoney, president and CEO at Boston Scientific. “These technologies help physicians save both limbs and lives, and we believe this transaction will enable us to reach more effectively the greater than 27 million patients worldwide who suffer from the debilitating effects of peripheral vascular disease.”
 
Boston Scientific expects the acquisition to be immaterial to adjusted earnings per share this year, accretive by approximately 1 cent next year and increasingly accretive beyond 2015. The deal is expected to be slightly dilutive to GAAP earnings per share (EPS) this year, immaterial in 2015 and less accretive than on an adjusted EPS basis after that due to acquisition-related net charges and amortization.
 
“We are confident that the planned sale of AngioJet, Jetstream and Fetch2 is a positive step for the long-term sustainability of these products given Boston Scientific’s strong position in devices for peripheral and cardiovascular diseases,” said Alan Main, president of Bayer HealthCare’s Medical Care Division and member of the Bayer HealthCare executive committee.
 
“With this sale, our Medical Care division can concentrate on innovation and growth in Radiology and Diabetes Care, where we already have a strong presence,” added Dr. Olivier Brandicourt, CEO of Bayer HealthCare AG.
 
This is Boston Scientific’s second acquisition this month. The company announced on May 6 that it had signed a definitive agreement to acquire IoGyn, Inc., a medical device start-up based in Cupertino, Calif. IoGyn has developed the Symphion System, a next-generation system for hysteroscopic intrauterine tissue removal including fibroids and polyps. The device has received U.S. Food and Drug Administration clearance, and will complement Boston Scientific’s own Genesys HTA System for abnormal uterine bleeding.

Kelsey Kaustinen

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