Boston Scientific Completes Sale of Fluid Management and Venous Access Businesses to Avista Capital Partners
NATICK, Mass., Feb. 14 -- Boston Scientific Corporation (NYSE:BSX) today announced that it has completed the sale of its Fluid Management and Venous Access businesses to Avista Capital Partners for $425 million in cash. The sale follows the definitive agreement announced on December 13, 2007.
The Company expects to record an after-tax gain of approximately $120 million during the first quarter of 2008 in connection with the transaction.
"The sale of the Fluid Management and Venous Access businesses completes our previously announced plans to divest five non-strategic businesses," said Jim Tobin, President and Chief Executive Officer of Boston Scientific. "These divestitures -- together with our expense and head count reductions and business restructuring -- are helping to realign our cost structure and simplify our operating model. The positive impact of these efforts will help us achieve our overall goals of restoring profitable growth, increasing shareholder value and strengthening Boston Scientific for the future."
"I am very excited to work with this exceptional management team to build on the strong leadership positions that the Fluid Management and Venous Access businesses currently hold in the cardiology, radiology and oncology markets," said Ron Sparks, Chairman and Chief Executive Officer of the new company. "We look forward to leveraging these franchises' brands, manufacturing facilities, sales forces, R&D capabilities and new product pipelines to create a world- class, stand-alone medical device company."
Avista said financing for the transaction was arranged by GE Capital Corporation and RBS Greenwich Capital. Ropes & Gray LLP served as legal counsel and RBS Greenwich Capital served as financial advisor to Avista Capital Partners.
Boston Scientific is a worldwide developer, manufacturer and marketer of medical devices whose products are used in a broad range of interventional medical specialties. For more information, please visit: www.bostonscientific.com.
Avista Capital Partners is a leading private equity firm with offices in New York and Houston. Founded in 2005, Avista manages $2.0 billion in private equity capital. Avista's strategy is to make controlling or influential minority investments primarily in growth-oriented media, healthcare and energy companies. Through its team of seasoned investment professionals and industry experts, Avista seeks to partner with exceptional management teams to invest in and add value to well-positioned businesses. For more information, visit www.avistacap.com.
CONTACT:
Paul Donovan
Media Relations
+1-508-650-8541 (office)
+1-508-667-5165 (mobile)
or Larry Neumann
Investor Relations
+1-508-650-8696 (office)
both of Boston Scientific Corporation
or Diana Postemsky of Kekst and Company
+1-212-521-4805
for Avista Capital Partners
Web site: www.bostonscientific.com/
http://www.avistacap.com/
