C. R. Bard, Inc. has entered into an agreement to sell certain assets of its Electrophysiology division to Boston Scientific Corporation for $275 million in cash. The transaction is expected to close in 2013, subject to certain regulatory and customary closing conditions.
Bard Electrophysiology division, located in Lowell, Massachusetts, manufactures and markets medical equipment, catheters and accessories used in cardiac electrophysiology (EP) procedures. Annual net sales associated with the divested assets were approximately $111 million in 2012.
Bard expects this transaction to be approximately 5 cents dilutive to 2013 adjusted earnings per share and immaterial to 2014 adjusted earnings per share guidance previously provided by the company. Boston Scientific said the addition of the 180-employee Bard EP business should be neutral this year and add 1¢ to its adjusted EPS in 2014.
Timothy M. Ring, chairman and chief executive officer, commented, “This divestiture is consistent with our strategic plan, which is designed to position our portfolio for accelerated sales growth over time. By exiting the EP business, we believe we can better direct management’s attention and our capital resources toward pursuing opportunities where we believe we can achieve sustainable long-term leadership positions and provide attractive growth and returns to shareholders.”
Source: C R Bard, Inc., Business Wire