Boston Scientific to Acquire U.K. Medical Device Company BTG for $4.2 Billion
Less than a week after Boston Scientific announced that it was undergoing a restructuring that could result in some job losses, the company announced that it will acquire U.K.-based BTG plc, a surgical device manufacturer for about $4.2 billion.
BTG develops products that are used in minimally-invasive surgical procedures for treating vascular diseases and cancer. The company has three key business areas, the largest of which is its Intervention Medicine portfolio of products. That line includes the company’s TheraSphere Y-90 radiotherapy microspheres and the GALIL cryoablation system, used to treat patients with liver, kidney and other cancers. In its announcement, Boston Scientific said the number of people annually diagnosed with liver cancer is expected to increase to more than 1.1 million by 2030. BTG also has a vascular portfolio, including filters, crossing catheters, microfoam and the EKOS Endovascular System, which is used to break down blood clots in patients with pulmonary emboli, deep vein thrombosis and peripheral arterial occlusions. The EKOS system was the first device approved by the U.S. Food and Drug Administration for the treatment of pulmonary embolisms, Boston Scientific noted. In addition to the medical device portfolio, BTG also includes a pharmaceutical business that includes acute care antidotes for the treatment of overexposure to certain medications and toxins.
The closing of the deal is expected to be finalized in the first half of 2019, Boston Scientific said. BTG has 1,600 employees located in North America, Europe, Asia and Australia. In the announcement, there was no indication if layoffs are expected from this deal.
Boston Scientific has been on an M&A roll this year. In August, the company acquired California stent maker Veiniti, Inc. in a deal worth up to $160 million. That deal was preceded by the July acquisition of Claret Medical for up to $270 million. The company also bought Cryterion Medical, Inc. for $202 million. Boston Scientific already owned a significant chunk of Cryterion.
Mike Mahoney, chairman and chief executive officer of Boston Scientific, said the acquisition of BTG and its portfolio of products will augment Boston Scientific’s capabilities in areas of unmet need, including cancer and pulmonary embolism.
"We are confident that the addition of these therapies to our portfolio will ultimately advance patient care in ways that could not be realized by either company alone, while also allowing us to realize substantial revenue and cost synergies and provide a strong return for investors,” Mahoney said in a statement.
BTG CEO Dame Louise Makin said Marlborough, Mass.-based Boston Scientific shares her company’s commitment to patient care and has a strong record of innovation and clinical expertise. Makin noted that the combined companies will be “well-positioned for success,” which will enable BTG’s products to “make a real difference to more people around the world.”
Last week Boston Scientific announced plans for a restructuring that is expected to reduce operating expenses by $100 to $150 million by the end of 2022. The restructuring will support a push toward improving operating performance and sustainable value, the company said. While some layoffs are expected, Boston Scientific said it anticipated that its overall employee base will remain “relatively unchanged” when the restructuring is completed.