Boston Scientific Corp. has completed its purchase of a Coon Rapids-based division of Bayer AG that will beef up the company’s portfolio in devices used to remove blood clots and plaque buildup caused by peripheral vascular disease.
The $415 million all-cash acquisition of Bayer Interventional expands Boston Scientific’s reach into atherectomy and thrombectomy procedures with two new devices that surgeons use to remove clots and plaque from blocked arteries. The acquisitions come as Boston Scientific’s biggest commercial rival, Medtronic Inc., is trying to acquire Irish surgical supplier Covidien, which offers competing peripheral vascular disease devices.
The deal to acquire Bayer Interventional was announced on May 15 and completed on Tuesday. All of Bayer Interventional’s 350 direct employees have been offered jobs with Boston Scientific, though it’s not yet clear how the buyout will affect any Bayer employees working under contracts. Marlborough, Mass.-based Boston Scientific employs more than 5,000 people in the Twin Cities, mainly at its campuses in Arden Hills and Maple Grove.
Like large devicemakers everywhere, Boston Scientific is racing to adapt to a marketplace in which hospitals are looking to buy more devices from a smaller number of vendors for the sake of simplicity and cost efficiency.
“Hospital systems today are looking to consolidate vendors, streamline purchasing, and make the purchasing system more efficient,” Boston Scientific Senior Vice President Jeff Mirviss said in an interview. “Partnership with a vendor like Boston Scientific, which can provide virtually all the products for a peripheral intervention, is an advantage to them.”
Peripheral interventions are procedures to remove blockages and restore blood flow in veins in the arms or legs. Boston Scientific will now sell Bayer’s AngioJet Thrombectomy System, which removes blood clots from arteries and veins. The company will control about 40 percent of the market for such thrombectory systems after the acquisition.
The company is also looking forward to sales of Bayer’s JetStream Atherectomy System, which uses a single-use catheter system with a reusable power soruce for revascularizations.
The deal is one of the biggest acquisitions in years for the Massachusetts devicemaker. Company officials still expect the deal to be immaterial to adjusted earnings for the fiscal year that ends Dec. 31, and accretive to earnings by about 1 cent per share in 2015.
Boston Scientific posted a net loss of $121 million on $7.1 billion in revenue in 2013. Although last year was the fourth annual loss in five years at the company, it was by the smallest of the losses during that time. Shares on Tuesday closed down nearly a percent at $12.59.