Boston Scientific to acquire C.R. Bard electrophysiology
2 July 2013
Boston Scientific Corporation has entered into a definitive
agreement to acquire Bard EP, the electrophysiology (EP) business of
C.R. Bard, for $275 million in cash. The company says it
expects to close the transaction in the second half of 2013, subject
to customary closing conditions.
Boston Scientific says the move supports its strategy to provide
a robust portfolio of solutions for cardiac catheter ablations and
other EP tools to diagnose and treat a variety of conditions in
which the heart beats abnormally. The addition of Bard EP's
strong commercial team and complementary portfolio, including
catheter and recording device technologies, would enable the company
to better serve the rapidly growing global EP market with a stronger
and more comprehensive offering. Electrophysiology is a $2.5
billion global market that is growing at nearly 10 percent annually.
"We expect this acquisition to accelerate the expansion of our
global electrophysiology business and we are pleased to welcome Bard
EP to the Boston Scientific team," said Mike Mahoney, president and
chief executive officer, Boston Scientific. "We believe the
innovation and global reach that Bard EP delivers will meaningfully
advance our position in this fast-growing market, enabling us to
more effectively serve the needs of patients who suffer from cardiac
Bard EP would become part of the existing Boston Scientific EP
business within the company's Rhythm Management unit.
Headquartered in Lowell, Mass., with nearly 180 employees around
the world, Bard EP offers a comprehensive portfolio including
advanced therapeutic catheters, diagnostic catheters,
electrophysiology recording systems and intracardiac access devices.
Bard EP generated sales of $111 million in 2012.
The agreement calls for an up-front payment of $275 million,
payable upon transaction closing. Boston Scientific currently
expects the net impact of this transaction on adjusted earnings per
share to be immaterial for 2013 and approximately one cent accretive
in 2014, and dilutive on a GAAP basis in both years as a result of
acquisition-related net charges and amortization, which will be
determined following the closing.