Boston Scientific Corp. is buying the interventional device division at Bayer AG for $415 million in a move that will expand the medical device maker's portfolio of coronary and peripheral vascular disease treatment technologies.
The sale will give Boston Scientific rights to AngioJet, a thrombectomy device, JetStream, an atherectomy technology, and Fetch 2, an aspiration catheter. Bayer Interventional reported $120 million in sales in the atherectomy and thrombectomy markets in 2013.
Berlin, Germany-based Bayer HealthCare CEO Olivier Brandicourt, M.D., said the transaction would allow Bayer to concentrate on its radiology and diabetes divisions. Alan Main, president of Bayer HealthCare's Medical Care Division, called the addition of AngioJet, Jetstream and Fetch2 “a positive step for the long-term sustainability of these products.”
"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 Main.
Boston Scientific is based in Natick, Mass. Bayer Interventional, which employs 350 people, is in Coon Rapids, Minn. The sale is expected to be completed in the second half of 2014.
"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," Boston Scientific President/CEO Mike Mahoney said. "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."
Upon completion of the transaction, 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, Peripheral Interventions, Boston Scientific. "We believe this acquisition will accelerate the growth of our Peripheral Interventions business and strengthen our position as a global leader in peripheral therapies."
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.