NATICK, Mass., Nov. 5 Boston ScientificCorporation (NYSE: BSX) today announced the signing of a definitive agreementfor the sale of its Cardiac Surgery and Vascular Surgery businesses to theGetinge Group, a global provider of healthcare equipment and systems. Thetransaction will be for a cash price of $750 million and is expected to closewithin the next 45-90 days, subject to regulatory approvals and customaryconditions. The Company announced its intent to sell the Cardiac Surgery andVascular Surgery businesses on August 16, as part of its plan to divest non-strategic assets and increase shareholder value.
Boston Scientific acquired the Cardiac Surgery business in April 2006 aspart of the Guidant transaction. The Cardiac Surgery business is a leadingdeveloper of medical technologies designed for use in surgical cardiacprocedures, including beating-heart bypass surgery systems and endoscopicvessel harvesting for coronary bypass surgery. The business employsapproximately 450 people. Boston Scientific acquired the Vascular Surgerybusiness in 1995. The Vascular Surgery business develops synthetic grafts andpatches used to surgically treat vascular disease, including the repair ofabdominal aortic aneurysms and peripheral vascular anatomy. The business hasapproximately 250 employees. The combined revenues of the two businesses in2006 were approximately $275 million.
"Working with the talented employees of the Cardiac Surgery and VascularSurgery businesses, our goal is to drive growth and bring new technologies tothese markets, ultimately benefiting cardiac and vascular surgeons and theirpatients," said Johan Malmquist, President and Chief Executive Officer of theGetinge Group of Stockholm, Sweden. "We are excited to complement ourexisting portfolio with these valuable businesses, each of which bringsleading market positions and impressive product lines."
"This transaction completes a previously announced element of our plan todivest non-strategic assets, focus on our core businesses and increaseshareholder value," said Jim Tobin, President and Chief Executive Officer ofBoston Scientific. "We deeply appreciate the contributions our CardiacSurgery and Vascular Surgery employees have made to Boston Scientific, ourcustomers and their patients. We know they will continue to serve customersand patients well going forward."
Boston Scientific is a worldwide developer, manufacturer and marketer ofmedical devices whose products are used in a broad range of interventionalmedical specialties. For more information, please visit:www.bostonscientific.com.
The Getinge Group is a leading global provider of equipment and systems tocustomers within health care, extended care and pharmaceuticalindustries/laboratories. The Group reported pro forma revenues ofapproximately $2.2 billion in 2006. The Group comprises three business areas:Medical Systems (systems for surgery and intensive care), Infection Control(system equipment for disinfection and sterilization) and Extended Care (careergonomics). The Group currently maintains leading positions within themajority of the company's product lines.
Cautionary Statement Regarding Forward Looking Statements
This press release contains forward-looking statements within the meaningof Section 21E of the Securities Exchange Act of 1934. Forward-lookingstatements may be identified by words like "anticipate," "expect," "project,""believe," "plan," "estimate," "intend" and similar words. These forward-looking statements are based on our beliefs, assumptions and estimates usinginformation available to us at the time and are not intended to be guaranteesof future events or performance. These forward-looking statements include,among other things, statements regarding our divestiture of non-strategicassets, our restructuring initiatives, our operational strategy, our financialperformanc