Medical device maker Boston Scientific Corp is buying Endo International’s men’s health and prostate businesses for up to $1.65 billion.
The companies have entered into a definitive agreement, under which Boston Scientific will acquire the American Medical Systems urology profile, which includes the Men’s Health and Prostate Health businesses, for $1.6 billion in up-front cash and a potential additional $50 million milestone dependent on 2016 sales. According to the companies, the deal is expected to close in the third quarter of 2015.
Once the deal is completed, the AMS Men’s Health and Prostate Health businesses will become part of Boston Scientific Urology and Women’s Health. Last year, the businesses generated sales of $400 million and income of about $130 million.
“We believe this strategic acquisition will strengthen Boston Scientific’s global leadership in the urology device category while delivering a strong return to our investors,” said Mike Mahoney, president and chief executive officer of Boston Scientific. “The combination of Boston Scientific’s Urology and Women’s Health and AMS’ urology portfolios will create a business with nearly $1 billion in annual sales and enable significant synergies and strong future growth prospects through portfolio innovation and international market expansion. We look forward to serving customers and impacting patient care in ways that could not be realized by either company alone.”
Commenting on the agreement, Karen Prange, senior vice president and president of Urology and Women’s Health at Boston Scientific Corporation said, “Urology is an exciting area with ample opportunities to address unmet medical needs. The acquisition is intended to bring together the global talent, expertise and product portfolios of both companies to drive continued healthcare advancements and value for our customers. Together, our strong leadership and innovative solutions can help physicians provide relief, restore bodily functions and enable millions of patients worldwide to regain control of their lives.”
Source: Boston Scientific Corporation
Last updated: 3/3/15; 12:50pm EST