Boston Scientific to Buy Majority Stake in Chinese Acotec

Boston Scientific made a partial offer to acquire a majority stake—up to a maximum of 65%—of Acotec, a Chinese medtech firm that offers solutions for interventional procedures.
 
The proposed price is HK$20 per share, which is a total upfront cash payment of about $523 million for the 65% stake at current exchange rates.
 
Acotec launched the first peripheral drug-coated balloon (DCB) in China after gaining approval from the NMPA. The company’s portfolio also includes radiofrequency ablation tech and thrombus aspiration catheters, as well as over 20 other products in various development stages.
 
In the 12-month period ending June 30, 2022, Acotec garnered sales of RMB 339 million (about $53 million), swelling 25% year-over-year in the first six months of 2022. The company had strong double-digit growth in each of the previous two years, as well.
 
“Acotec is a profitable, fast-growing company with a strong portfolio and innovative pipeline of medical technologies, and we believe this investment will generate growth opportunities for both companies,” Art Butcher, executive VP and group president, MedSurg and Asia Pacific, Boston Scientific, told the press. “We expect completion of the partial offer to further strengthen our presence in China and create the potential for commercialization of Acotec products globally, providing an increased number of physicians and patients access to our robust and complementary product portfolios.”
 
Boston Scientific expects adjusting earnings per share to be immaterial in 2023 and impact to GAAP earnings per share to be less accretive due to amortization expense and deal-related net charges.
 
Boston Scientific anticipates the transaction to close in the first half of 2023.