Boston sells Cardiac Surgery and Vascular Surgery units
Boston Scientific has signed a definitive agreement for the sale of its Cardiac Surgery and Vascular Surgery businesses to the Getinge Group, for a cash price of US$750 million. The company announced its intent to sell the Cardiac Surgery and Vascular Surgery businesses on August, as part of its plan to divest non-strategic assets and increase shareholder value. Boston Scientific acquired the Cardiac Surgery business in April 2006 as part of the Guidant transaction. The Cardiac Surgery business is a leading developer of medical technologies designed for use in surgical cardiac procedures, including beating-heart bypass surgery systems and endoscopic vessel harvesting for coronary bypass surgery. Boston Scientific acquired the Vascular Surgery business in 1995. The Vascular Surgery business develops synthetic grafts and patches used to surgically treat vascular disease, including the repair of abdominal aortic aneurysms and peripheral vascular anatomy. The combined revenues of the two businesses in 2006 were approximately US$275 million. Getinge regards the acquisition as a strong base for further expansion in the global market for medical devices, equipment and instruments for the cardiac surgery. Getinge currently has a successful operation in the perfusion area of the cardiac surgery market, with strong market positions and sales channels in Europe and in a number of developing markets. By marketing Cardiac Surgery’s and Vascular Surgery’s products through Getinge’s Business Area Medical Systems’ sales channels outside the US, it is expected that it will be possible to considerably improve the market share and growth in these markets. In a corresponding manner, the introduction of Cardiopulmonary’s products into the newly-acquired Cardiac Surgery’s strong sales organisation in the US will lead to more rapid growth for the Group’s perfusion products.