Getinge acquires Boston Scientific cardiac unit
Boston Scientific Corp. has said it will sell its cardiac and vascular surgery businesses to Sweden-based Getinge Group for $750 million.
Boston Scientific acquired the cardiac surgery unit in April 2006 through its $27 billion acquisition of Guidant Corp., a deal that boosted Boston Scientific's debt amid downturns in two of its heart device markets.
Boston Scientific's 450-employee cardiac surgery unit, with headquarters in San Jose, Calif., and a manufacturing facility in Puerto Rico, makes technologies to aid in heart surgery. The unit generated $189 million in revenue last year.
"The acquisition of these high-quality, market-leading businesses creates a unique platform upon which to take further steps toward building a global, market-leading presence in cardiac surgery," said Johan Malmquist, President and CEO of Getinge AB, in a statement.
"I look forward to working with the existing team at these businesses who have so successfully developed these operations in recent years," he added.
Boston Scientific had $7.8 billion in total revenue in 2006 and employed 28,000 people overall.
The vascular surgery unit's products include grafts and patches for repair of abdominal aortic aneurysms. That unit, with 2006 revenue of $86 million, is headquartered in Wayne, N.J., with 250 employees. Boston Scientific acquired it in 1995.
The two units will expand Getinge's business providing equipment and systems used in surgery and intensive care.
The sale, expected to close within three months, is part of a plan Boston Scientific announced in August to sell off some of its medical device units to reduce debt and focus on businesses with the greatest growth potential. The Natick-based company also announced plans last month to cut 2,300 jobs, about 8 percent of its work force.
Its shares rose 2 cents to $13.26 in morning trading Monday.
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Boston Scientific acquired the cardiac surgery unit in April 2006 through its $27 billion acquisition of Guidant Corp., a deal that boosted Boston Scientific's debt amid downturns in two of its heart device markets.
Boston Scientific's 450-employee cardiac surgery unit, with headquarters in San Jose, Calif., and a manufacturing facility in Puerto Rico, makes technologies to aid in heart surgery. The unit generated $189 million in revenue last year.
"The acquisition of these high-quality, market-leading businesses creates a unique platform upon which to take further steps toward building a global, market-leading presence in cardiac surgery," said Johan Malmquist, President and CEO of Getinge AB, in a statement.
"I look forward to working with the existing team at these businesses who have so successfully developed these operations in recent years," he added.
Boston Scientific had $7.8 billion in total revenue in 2006 and employed 28,000 people overall.
The vascular surgery unit's products include grafts and patches for repair of abdominal aortic aneurysms. That unit, with 2006 revenue of $86 million, is headquartered in Wayne, N.J., with 250 employees. Boston Scientific acquired it in 1995.
The two units will expand Getinge's business providing equipment and systems used in surgery and intensive care.
The sale, expected to close within three months, is part of a plan Boston Scientific announced in August to sell off some of its medical device units to reduce debt and focus on businesses with the greatest growth potential. The Natick-based company also announced plans last month to cut 2,300 jobs, about 8 percent of its work force.
Its shares rose 2 cents to $13.26 in morning trading Monday.
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