Boston Scientific to Sell Fluid Management, Venous Access to Avista for $425 Million
December 17, 2007 - Boston Scientific Corp. and Avista Capital Partners announced that Avista will acquire Boston Scientific’s Fluid Management and Venous Access businesses for $425 million in cash as part of Boston Scientific’s plan to divest non-strategic assets.
The transaction is expected to close in the first quarter of 2008, subject to regulatory approvals and customary conditions.
The Fluid Management franchise, formerly North American Medical Instruments Corp. (NAMIC), produces a range of products used to manage fluid and measure pressure during angiography and angioplasty procedures.
The Venous Access franchise, whose products are also manufactured in Glens Falls, offers a portfolio of implantable devices designed to provide access to the blood stream for patients requiring intravenous antibiotics, nutrition, chemotherapy and blood sampling. The Venous Access franchise is part of Boston Scientific's Oncology business. Projected revenue for the two businesses in 2007 is approximately $170 million.
Avista said that upon close of the transaction, the combined Fluid Management/Venous Access business will operate as an independent company under a new name. Ron Sparks, an Avista healthcare industry advisor, will become chairman and chief executive officer of the new company. Dave McClellan, president of Boston Scientific's Oncology business, will become president of the new company.
"We now have under agreement the divestitures of all five non-strategic businesses we had previously identified for sale," said Jim Tobin, president and CEO of Boston Scientific. "In addition, our expense and head count reduction initiative is well under way, and we continue to make progress monetizing our investment portfolio and restructuring several businesses. These measures should help us further our overall goals of restoring profitable growth, increasing shareholder value and continuing to strengthen Boston Scientific for the future."
In addition to the two sales announced today, Boston Scientific has also recently announced agreements to sell its Cardiac Surgery, Vascular Surgery and Auditory businesses.
"Boston Scientific's Fluid Management and Venous Access businesses maintain strong leadership positions in their respective markets and are recognized for benefiting interventional cardiologists, radiologists and oncologists and their patients," said David Burgstahler, a partner at Avista Capital Partners. "Furthermore, given his extensive experience in the medical device field, Ron Sparks is a great fit to drive growth for the combined business going forward."
Fluid Management/Venous Access will be Avista's fifth investment in the healthcare industry. In 2007, Avista made healthcare investments in BioReliance (www.bioreliance.com) and VWR International (www.vwr.com) and in 2006 Avista announced investments in Nycomed (www.nycomed.com) and MedServe (www.medserveinc.com). While at DLJ Merchant Banking Partners, the Avista partners were involved in numerous healthcare transactions including Accellent, Charles River Laboratories, Focus Diagnostics, KCI, Prometheus Labs and Warner Chilcott.
For more information: www.bostonscientific.com
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