Boston Scientific offers $4B for BTG

Boston Scientific (NYSE:BSX) said today that it agreed to offer roughly $4.24 billion to acquire British medical device maker BTG (LON:BTG).

The £8.40-per-share offer, worth about £3.3 billion, is a 36.6% premium over BTG’s closing price yesterday and a 51.0% premium over the stock’s 90-day volume-weighted average price, the London-based company said. BTG’s largest division makes devices for oncology and vascular conditions; the company also makes overdose and antivenin drugs for snakebite.

“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,” chairman & CEO Mike Mahoney said in prepared remarks. “We are confident that the addition of these therapies to our portfolio will ultimately advance patient care in ways that could not be realized by either company alone, while also allowing us to realize substantial revenue and cost synergies and provide a strong return for investors.”

“I would like to thank and acknowledge all BTG colleagues for building a leading global healthcare company. 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,” added BTG CEO Dame Louise Makin. “We remain committed to transforming patient care through our passion for people, relentless curiosity, and ambition to lead the way. Boston Scientific shares that vision, and their comprehensive clinical and commercial expertise will accelerate the delivery of our strategy and expand the global reach of our interventional medicine portfolio. The strong strategic and cultural fit between the companies gives me confidence that our business will continue to make a real difference for our patients, customers, employees and wider stakeholders.”

Marlborough, Mass.-based Boston said it plans to fund the deal, expected to close in the first half of 2019, with cash and debt. It’s forecast to add 2¢ to 3¢ to the company’s adjusted EPS next year and increasing thereafter.

BTG shares were up 34.0% to £8.24 apiece today in late-morning trading in London. BSX shares closed down -5.2% at $35.29 apiece yesterday.

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