Boston Scientific to sell cardiac, vascular surgery units to healthcare provider Getinge Group for $750 million
05 November 2007Boston Scientific Corporation today disclosed having signed a definitive agreement to sell its cardiac surgery and vascular surgery businesses to Stockholm-based global provider of healthcare equipment and systems, Getinge Group for a cash price of $750 million.
combined revenues of the two businesses in 2006 were approximately $275 million.
The Getinge Group is a leading global provider of equipment and systems for the health care, extended care and pharmaceutical industries / laboratories. It comprises three business areas - medical systems (systems for surgery and intensive care), infection control (system equipment for disinfection and sterilisation) and extended care (care ergonomics). The Group reported pro forma revenues of approximately $2.2 billion in 2006.
Boston Scientific had announced its intent to sell the cardiac surgery and vascular surgery businesses in August, as part of its plan to divest non-strategic assets and increase shareholder value.
Boston Scientific acquired the cardiac surgery business in April 2006 as part of the Guidant transaction. The cardiac surgery business is a leading developer of medical technologies designed for use in surgical cardiac procedures, including beating-heart bypass surgery systems and endoscopic vessel harvesting for coronary bypass surgery.
The business employs approximately 450 people.
It acquired the vascular surgery business in 1995. The business 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.
"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 chief executive officer of the Getinge Group of Stockholm, Sweden. We are excited to complement our existing portfolio with these valuable businesses, each of which brings leading market positions and impressive product lines."
"This transaction completes a previously announced element of our plan to divest non-strategic assets, focus on our core businesses and increase shareholder value," said Jim Tobin, president and chief executive officer, Boston Scientific. "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."