Boston Scientific (NYSE:BSX) said it agreed to acquire Bayer AG’s interventional unit for $415 million, in a move to significantly bolster its own $200 million peripheral interventions business.
The deal adds atherectomy and thrombectomy devices to Boston Scientific’s portfolio; Bayer’s Minneapolis-area interventional unit, which employs about 350 workers, makes the AngioJet thrombectomy system, Fetch 2 aspiration catheter and JetStream atherectomy device, according to a press release. The division posted sales of roughly $120 million last year, Boston Scientific said.
Natick, Mass.-based Boston Scientific reported peripheral intervention sales of $203 million during the 1st quarter, a 3.6% gain on the same period last year for the division.
"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," president & CEO Mike Mahoney said in prepared remarks. "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."
The all-cash deal, expected to close during the 2nd half of the year, is likely to be "immaterial" to adjusted earnings per share this year but add 1¢ in 2015 and be "increasingly accretive" after that, according to the release.
"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," Boston Scientific’s peripheral interventions president Jeff Mirviss said 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 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," added Bayer HealthCare medical care president Alan Main.
