NEW YORK (The Deal) -- Medical devices maker Boston Scientific (BSX) on Thursday, May 15, agreed to buy the interventional devices business of Bayer as the German seller continues to reshape itself and focus on pharmaceuticals.
Boston Scientific said it would pay $415 million to expand its treatment options for vascular disease.
"These technologies help physicians save both limbs and lives, and we believe this transaction will enable us to reach more effectively the greater than 27 million patients worldwide who suffer from the debilitating effects of peripheral vascular disease," said Boston Scientific President and CEO Mike Mahoney in a statement.
Bayer's interventional device unit has three main devices and is based near Minneapolis. It employs 350 and had 2013 sales of about $120 million.
The Jetstream Atherectomy System helps clear out deposits in peripheral arteries and the Fetch2 Aspiration Catheter is used to remove blood clots in small blood vessels. Meanwhile, the AngioJet Ultra also clears blood clots from veins and arteries.
It's the second transaction this month for Natick, Mass.-based Boston Scientific Corp.
The company May 6 said it bought the 72% of Cupertino, Calif-based IoGyn it didn't already own for $65 million. IoGyn makes products for minimally invasive gynecological surgery. Boston Scientific wants to leverage the target's Symphion System technology, which is used to remove intrauterine tissue including fibroids (myomas) and polyps.
Boston Scientific expects to close the Bayer purchase in the second half and said it would add $0.01 to earnings per share this year.
Analysts have been expecting Leverkusen, Germany-based Bayer to begin unloading some of its non-drug units after earlier this month agreeing to buy the over-the-counter business of Merck (MRK) for $14.2 billion.
The Merck acquisition is the second purchase this year for its non-prescription business, which is based on the 2004, 2.4 billion ($3.3 billion) acquisition of Roche Holding's OTC business. In February Bayer struck an agreement for Chinese OTC and herbal medicine specialist Dihon Pharmaceutical Group. No price was given in the deal but Dihon has annual sales of 123 million.
Analysts are still expecting Bayer to part with its plastics division as well. The company has reportedly already started an auction for the unit, known as its material science division. It's expected to fetch more than $10 billion.
Bayer shares slipped 0.25 to 103.25 in afternoon Frankfurt trading, tracking a similar decline in Germany's benchmark DAX index.