Boston Sci Closes Division Sale to Stryker Corp. On Jan. 3, Boston Scientific Corp. completed the

Boston Sci Closes Division Sale to Stryker Corp.

On Jan. 3, Boston Scientific Corp. completed the previously announced sale of its neurovascular business to Stryker Corp. In addition, the company also prepaid $600 million in senior notes that were due on June 1. There will be a pretax charge of $15 million in the fourth quarter for accelerated interest expense on the prepayment,officials said.

The neurovascular business is based in Fremont, Calif., and makes devices that are used to treat brain aneurysms and other vascular diseases that affect the brain. Its products include stents and detachable coils. Stryker and Boston Scientific announced the deal in late November.

Boston Scientific said Stryker paid $1.38 billion upfront for the business, along with a $50 million milestone payment. Another $24 million was placed in escrow and will be released when the deal closes in foreign markets. Stryker will pay the last $50 million when some manufacturing facilities are transferred or separated from Boston Scientific. The Natick, Mass.-based device firm has begun to reshape its product offering in the face of slower sales for itsprimary heart stents and implantable defibrillators businesses. Kalamazoo, Mich.-based Stryker also is looking into faster-growth opportunities after sales of its hip and knee replacement joints slowed in the recession.

The company is focused on paying down a large debt load it accumulated in the 2006 acquisition of Guidant Corp. It also plans to record a pretax gain from the sale of the neurovascular business of more than $500 million in the first quarter. Profit for 2011 would be reduced by about 4 to 6 cents, according to Boston Scientific. Stryker said the deal will be neutral to its profit in 2011 or could increase it slightly. That estimate excludes one-time charges.