Friday, February 15, 2008

Boston Scientific closes $425M biz unit sale to Avista

Boston Scientific Corp. has completed the sale of its fluid management and venous access businesses to Avista Capital Partners for $425 million in cash, officials said.

In connection with the deal, first announced in December, the Natick-based medical devices giant expects an after-tax gain of approximately $120 million during the first quarter.

Avista, a private equity firm, said the venous access and fluid management businesses would operate as one company under a new name. That name has not yet been released.

Boston Scientific (NYSE: BSX) is a developer, manufacturer and marketer of medical devices whose products are used in interventional medical specialties.

The fluid management business makes products that include those used to manage fluid pressure during cardiac procedures. The venous access business has a line of implant devices used to deliver treatments into the bloodstream.

Boston Scientific, which employs 28,600 workers, reported a 2006 net loss of nearly $3.6 billion on revenue of $7.8 billion. The company has struggled in the face of slower sales of its drug-eluting coronary stents and debt from its $27 billion purchase in 2006 of cardiac devices maker Guidant Corp.