Date: 2014-05-15
Type of information: Pipeline acquisition
Acquired company: Bayer Healthcare\'s Interventional device business (Germany - USA)
Acquiring company: Boston Scientific (USA - MA)
Amount: $ 415 million (about € 300 million)
Terms: * On September 2, 2014, Bayer HealthCare announced it has closed on the divestiture of its Interventional device business to Boston Scientific. The total consideration for the transaction, including fees for transitional services, is $ 415 million (about € 300 million). With this sale, Bayer HealthCare’s Medical Care division can concentrate on innovation and growth in Radiology and Diabetes Care, where the business already has a strong presence. Bayer’s Interventional business accounted for approximately $ 120 million in sales in 2013. The acquisition enhances the ability of Boston Scientific to offer physicians and healthcare systems a more complete portfolio of solutions to treat challenging vascular conditions. The addition of the Bayer Interventional strong commercial organization and innovative technologies supports the Boston Scientific strategy to provide a comprehensive portfolio of leading solutions to treat peripheral vascular disease. * On May 15, 2014, in a move to expand significantly its portfolio of leading solutions for peripheral interventions, Boston Scientific Corporation has entered into a definitive agreement to acquire the Interventional Division of Bayer AG for $415 million in cash, including fees for transitional services. The company expects to close the transaction in the second half of 2014, subject to customary closing conditions. The addition of Bayer Interventional\'s strong commercial organization and innovative technologies supports Boston Scientific\'s strategy to provide a comprehensive portfolio of leading solutions to treat peripheral vascular disease. The acquisition is expected to improve Boston Scientific\'s access to a number of attractive segments in the peripheral space, including the growing atherectomy and thrombectomy categories. Upon completion of the transaction, Bayer Interventional will become part of the existing Boston Scientific Peripheral Interventions business. The agreement calls for an up-front payment of $415 million. The company currently expects the transaction to be immaterial to adjusted earnings per share in 2014, accretive by approximately $.01 in 2015 and increasingly accretive thereafter. On a GAAP earnings per share basis, the company expects the transaction to be slightly dilutive in 2014, immaterial in 2015, and less accretive than on an adjusted earnings per share basis thereafter as a result of acquisition-related net charges and amortization, which will be determined following the closing. Closing of the transaction is subject to customary conditions, including relevant antitrust clearance, and is expected to occur in the second half of 2014.
Details: Based near Minneapolis, Minn., Bayer Interventional has approximately 350 employees and offers a number of innovative technologies designed to treat coronary and peripheral vascular disease. The transaction includes the AngioJet® Thrombectomy System and the Fetch® 2 Aspiration Catheter, which use endovascular techniques to remove blood clots from blocked arteries and veins, and the JetStream® Atherectomy System, a minimally invasive device used to remove plaque from diseased peripheral arteries.The sale includes the AngioJet™ (thrombectomy) and Jetstream™ (atherectomy) systems, and the Fetch™2 Aspiration Catheter used in cardiology, radiology and peripheral vascular procedures.
Related: Medical devices Cardiovascular diseases
