Boston Scientific’s acquisition of three men’s health devices from American Medical Systems (AMS), will create a new division, expected to bring in sales of nearly $1 billion a year
Boston Scientific, paid $1.6 billion to buy three urology device from AMS
The Massachusetts device company, Boston Scientific, paid $1.6 billion to buy AMS’ devices to treat non-cancerous enlarged prostates, erectile dysfunction and urinary incontinence.
These three urology devices generated sales of about $400 million last year for Minnetonka-based AMS.
Boston Scientific will pay another $50 million if the devices hit sales targets in 2016.
The deal is expected to create savings and sales synergies of $50 million a year by the end of 2018.
Last year, sales of devices being acquired by Boston Scientific generated adjusted income of about $130 million on $400 million in sales.
Karen Prange, president of the Boston Scientific’s urology and women’s health division, said: “Urology is a healthy, growing market. The companies together will have … devices to treat 50% of all urology surgical procedures.”
The seller is Dublin-based pharmaceutical company Endo International, which paid $2.9 billion to buy AMS just four years ago.
Boston Scientific is not acquiring the AMS women’s health business, which remains for sale under a plan approved by the Endo board of directors in February.
Stock analyst Tao Levy of Wedbush Securities said the three men’s health devices that Boston Scientific is acquiring will fit well with its existing business in treating kidney stones and pelvic-floor disorders in women.