December 14, 2007
BSX Sells Two Businesses For $425M
By Christina Davis
Natick-based Boston Scientific has agreed to sell off two of its business units to Avista Capital Partners , a New York-based private equity group, for $425 million.
Boston Scientific is selling its fluid management and venous access businesses. The deal is expected to close in the first quarter of 2008 after receiving regulatory approvals.
Avista said that under its ownership, it would combine the two businesses, and operate them under a new name. Ron Sparks, an Avista health care industry advisor, will become the chairman and CEO of the new company, while Dave McClellan, president of Boston Scientific’s Oncology business, will become president.
Projected revenue for the two businesses in 2007 is approximately $170 million.
Boston Scientific has identified five business divisions to sell off as it seeks to right itself after a very difficult year financially. In October, the company announced plans to lay off 2,300 employees in order to cut costs. Boston Scientific had 1,850 employees in Central Massachusetts as of June 2007.
Boston Scientific is selling its fluid management and venous access businesses. The deal is expected to close in the first quarter of 2008 after receiving regulatory approvals.
Avista said that under its ownership, it would combine the two businesses, and operate them under a new name. Ron Sparks, an Avista health care industry advisor, will become the chairman and CEO of the new company, while Dave McClellan, president of Boston Scientific’s Oncology business, will become president.
Projected revenue for the two businesses in 2007 is approximately $170 million.
Boston Scientific has identified five business divisions to sell off as it seeks to right itself after a very difficult year financially. In October, the company announced plans to lay off 2,300 employees in order to cut costs. Boston Scientific had 1,850 employees in Central Massachusetts as of June 2007.
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