Boston Scientific has completed the sale of its Neurovascular business to Stryker at the sale price of $1.5bn, which includes products used for the minimally invasive treatment of hemorrhagic and ischemic stroke.
Stryker said that the remaining $50m will be payable upon the transfer or separation of certain manufacturing facilities and the sale follows the definitive agreement reported on 28 October 2010.
Boston Scientific plans to record a pre-tax gain associated with the sale of its Neurovascular business in excess of $500m in the first quarter of 2011, excluding any impact of the receipt of future milestone payments.
Boston Scientific president and CEO Ray Elliott said that the sale of their Neurovascular business and the prepayment of $600m of debt strengthen their financial flexibility and enhance their capacity to fund acquisitions and other investments that advance their strategy of realigning their portfolio through the execution of Priority Growth Initiatives.
Stryker chairman, president and CEO Stephen MacMillan said that with the acquisition of Boston Scientific Neurovascular they are further broadening their footprint in one of the growing and innovative segments of the medical technology market.
"We look forward to the ongoing introduction on next generation neurovascular devices that will improve outcomes for patients and help drive accelerating sales growth," MacMillan said.