Boston Scientific is to explore the sale of its Cardiac Surgery and Vascular Surgery businesses as part of its plan to review its portfolio of assets and divest those considered non-strategic, and to strengthen its operating and financial performance.
The company acquired the Cardiac Surgery business in April 2006 as part of the Guidant transaction. Headquartered in San Jose with a manufacturing facility in Dorado, Puerto Rico, the Cardiac Surgery business is a leading developer of medical technologies designed to provide less-invasive therapies in cardiac surgery, including beating heart bypass surgery systems, endoscopic vessel harvesting for coronary bypass surgery, and microwave surgical ablation. The business employs approximately 450 people and had 2006 revenues of US$189 million.
Boston Scientific established its Vascular Surgery business with the acquisition of Meadox Medicals in 1995. The Vascular Surgery business develops market-leading synthetic grafts and patches for repair of abdominal aortic aneurysms and peripheral vascular anatomy. The business had 2006 revenues of US$86 million and has approximately 250 employees, primarily located at its manufacturing site in Wayne, NJ.
“As part of an ongoing review of our assets, we have initiated a process to explore the sale of our Cardiac Surgery and Vascular Surgery businesses,” said Paul LaViolette, COO of Boston Scientific. “If finalised, this sale will support our efforts to focus resources on our core businesses and improve our operating and financial performance. These are strong businesses, and we believe the combined portfolio has great potential for success with the focused attention and resources of external ownership. We are in discussions with several potential buyers, and we expect the process to take a number of months.”
LaViolette added that the potential sale was another step in divesting non-strategic assets, monetise its investment portfolio and bring expenses and head count in line with revenues. In recent months the company has retained its Endosurgery group, entered into an agreement to assume sole management and control of its pain management business from Advanced Bionics and sell the Advanced Bionics auditory business. In addition, the company has continued to focus on the recovery of the drug-eluting stent and cardiac rhythm management markets.