Boston Scientific closes $1.6B Endo urology portfolio buy

Boston Scientific (NYSE:BSX) said today it closed its $1.6 billion acquisition of the Endo Health Solutions (NSDQ:ENDP) owned American Medical Systems urology portfolio, including its men’s health and prostate health businesses.

The deal consists of a $1.6 billion up-front payment and a potential $50 million milestone payment based on 2016 sales, according to the companies.

“This is an exciting day as we join forces and welcome the AMS men’s health and prostate health teams to Boston Scientific. Together, we create a business with nearly $1 billion in annual sales, strong future growth prospects through innovation and market expansion, and a significant opportunity to address unmet medical needs. As a category leader, our combined organization will bring value-driven innovations that can help healthcare providers advance patient outcomes, reduce procedure costs, enhance quality and evolve the treatment of urologic and pelvic conditions in ways that previously could not be realized by either company alone,” Boston Scientific eurology and pelvic health prez Karen Prange said in a press release.

Marlborough, Mass.-based Boston Scientific said it will integrate the newly purchased AMS men’s health and prostate business into its urology and women’s health business.

“We are pleased to have completed the divestiture of our AMS men’s and prostate health businesses, marking another important milestone in our strategy to transform our portfolio and sharpen our focus on enhancing leadership in the global specialty pharmaceutical market. I would like to thank Camille Farhat, his leadership team and all of the employees of AMS for their continued dedication and tireless commitment to supporting the business. As Endo moves forward, we are excited about our ability to build a powerful platform for future organic growth, and to continue executing on value-driven strategic M&A to deliver enhanced value for shareholders,” Endo CEO Rajiv De Silva said in prepared remarks.

The deal includes AMS’s minimally invasive GreenLight XPS and HPS laster therapy systems, the AMS 800 urinary control system and AMS 700 inflatable penile prosthesis, the companies said.

The deal is Boston Scientific’s largest acquisition since its infamous $27 billion buyout of Guidant Corp. nearly a decade ago.

In May, Boston Scientific priced a $1.85 billion debt offering to help pay for the massive acquisition, saying it planned to fund the AMS buy with the proceeds from the debt offering and from a $750 million 5-year term loan.

Rumors that a deal between Boston and Endo could be in the offing surfaced last February, although reports that Endo was shopping the business came to light as early as August 2014. Endo bought pelvic devices maker AMS for $2.9 billion in cash in 2011, before it became embroiled in thousands of high-profile product injury lawsuits over pelvic mesh implants (which also ensnared Boston Scientific and other mesh makers).

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