BY Richard Summerfield
Boston Scientific Corp is to acquire British rival BTG Corp in an all-cash $4.2bn deal which will improve the US firm’s offering in the field of interventional medicine.
The deal will see Boston Scientific pay 840 pence in cash per share for BTG, a 37 percent premium over the company’s closing price on Monday and a 50 percent premium to BTG’s 90-day trading average. Completion of the deal is expected in mid-2019, subject to regulatory approval and customary closing conditions.
“The acquisition of BTG and its rapidly growing peripheral interventional portfolio is an exciting extension of our category leadership strategy that will augment our capabilities in important areas of unmet need such as cancer and pulmonary embolism,” said Michael F. Mahoney, chairman and chief executive of Boston Scientific. “We are confident that the addition of these therapies to our portfolio will ultimately advance patient care in ways that could not be realised by either company alone, while also allowing us to realise substantial synergies and provide a strong return for investors.”
Boston Scientific expects the acquisition to deliver short- and long-term benefits, including strengthening the company’s offerings in the area of cancer treatment through the addition of BTG’s interventional oncology division.
The acquisition is Boston Scientific’s biggest since 2005, when it acquired device maker Guidant for $25.2bn. The company will finance the deal through a combination of cash on hand and proceeds from debt financing. Boston Scientific said that the acquisition of BTG would boost adjusted earnings by two to three cents a share in 2019 and would be increasingly accretive thereafter.
“We believe Boston Scientific’s offer represents an attractive proposition for BTG Shareholders with a significant premium in cash and recognises the value created by the support of our long term large shareholders,” said Garry Watts, chairman of BTG. “We are proud of what BTG has become and of all BTG employees for their contributions.”
“I would like to thank and acknowledge all BTG colleagues for building a leading global healthcare company,” said Louise Makin, chief executive of BTG. “Our interventional medicine portfolio delivers value to patients and is a significant growth driver for the business, and we’re also proud of our highly profitable pharmaceuticals business focused on critical care products.”