February 19, 2008 - Boston Scientific Corp. closed the sale of its Fluid Management and Venous Access businesses to Avista Capital Partners for $425 million in cash, completing its divestiture of five non-strategic businesses.
The sale follows the definitive agreement announced on Dec. 13, 2007. The Company expects to record an after-tax gain of approximately $120 million during the first quarter of 2008 in connection with the transaction.
"The sale of the Fluid Management and Venous Access businesses completes our previously announced plans to divest five nonstrategic businesses," said Jim Tobin, President and Chief Executive Officer of Boston Scientific. "These divestitures - together with our expense and head count reductions and business restructuring - are helping to realign our cost structure and simplify our operating model. The positive impact of these efforts will help us achieve our overall goals of restoring profitable growth, increasing shareholder value and strengthening Boston Scientific for the future."
"I am very excited to work with this exceptional management team to build on the strong leadership positions that the Fluid Management and Venous Access businesses currently hold in the cardiology, radiology and oncology markets," said Ron Sparks, Chairman and CEO of the new company. "We look forward to leveraging these franchises' brands, manufacturing facilities, sales forces, R&D capabilities and new product pipelines to create a world- class, stand-alone medical device company."
Avista said financing for the transaction was arranged by GE Capital Corporation and RBS Greenwich Capital. Ropes & Gray LLP served as legal counsel and RBS Greenwich Capital served as financial advisor to Avista Capital Partners.
For more information: www.bostonscientific.com