Two Units for Sale from Boston Scientific
Boston Scientific Corporation recently announced their plans to sell two of their business units, the venous access and fluid management businesses. Both will be sold to a private equity firm, Avista Capital Partners, for $425 million in cash. The news was reported by Boston Scientific.
News suggests that the two units will become a new, independent company under the guidance of Avista. The new president will be Dave McClellan, who currently holds the position as Head of the Oncology Unit at Boston Scientific. The Chief Executive and Chairman of the new organization will be Ron Sparks, one of the Avista advisors.
Boston Scientific detailed a plan in August to sell some of the company’s non-strategic assets. The vascular and cardiac surgery businesses of Boston Scientific were sold in November for $75 million in cash to the Getinge Group.
The Boston Scientific CEO and President noted that all five of the units planned for sale, as described in August, have pending acquisition deals. This has allowed the company to restructure the business, in addition to progress towards monetizing the company’s investment portfolio.
The deal is expected to close during the first quarter of 2008.
December 20, 2007 Related topics: People, Mergers & Acquisitions