Boston Scientific acquiring C.R. Bard unit for $275M cash
- Article by: Steve Alexander
- Star Tribune
- June 29, 2013 - 6:49 AM
Heart device giant Boston Scientific Corp. is acquiring the electrophysiology business of C. R. Bard for $275 million in cash, expanding its role in treating abnormal heartbeats.
The Bard division, based in Lowell, Mass., manufactures medical equipment, catheters and accessories; its sales were about $111 million last year. It has about 180 employees worldwide.
Boston Scientific will merge the Bard unit with its own rhythm management business, one of three global reporting units created under a restructuring announced in January. Its rhythm management business is best known for making pacemakers and implantable defibrillators. The other two segments are cardiovascular and medical surgery.
Boston Scientific, based in Natick, Mass., has facilities in Maple Grove, Plymouth and St. Paul.
The acquisition apparently is part of Boston Scientific’s effort to shore up its rhythm management business, where sales dropped 5 percent in the first quarter. The company said there is a $2.5 billion worldwide market for electrophysiology that is growing 10 percent annually.
“We believe the innovation and global reach that Bard EP delivers will meaningfully advance our position in this fast-growing market,” Boston Scientific Chief Executive Mike Mahoney said in a statement.
In a note to investors, Wells Fargo’s Kevin Strange wrote that the acquisition will help Boston Scientific move up in the global electrophysiology market — from No. 4 to No. 3 — with about an 11 percent market share.
“We expect [Bard’s] strong portfolio of diagnostic catheters to be complementary to [Boston Scientific’s] portfolio of therapeutic catheters, and geographically, [Bard] has a strong presence outside the U.S., whereas [Boston Scientific] has a stronger presence in the U.S, which we expect to also be complementary,” he wrote. “Overall, we think the acquisition is strategically sound and consistent with [Boston Scientific’s] stated desire to reinvigorate their EP business.”
Boston Scientific, which reported a first-quarter loss of $354 million on revenue of $1.8 billion, said the deal should close later this year and will not affect its adjusted earnings per share for the current fiscal year, although it will be dilutive to GAAP earnings.
Steve Alexander • 612-673-4553
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