By Robb M. Stewart


Boston Scientific Corp. struck a deal to buy the global surgical business of privately held Lumenis Ltd. for a $1.07 billion upfront cash payment in a move to expand its kidney stone management portfolio.

The definitive agreement with an affiliate of Baring Private Equity Asia Ltd., which would retain ownership of Lumenis's global aesthetics and ophthalmology businesses, is subject to closing adjustments, Boston Scientific said Wednesday.

The Lumenis surgical business, with 2021 net sales expected to be about $200 million, includes laser systems, fibers and accessories used for urology and otolaryngology procedures, Boston Scientific said.

The medical-technology company has had a relationship with Israel-based Lumenis for more than 20 years and currently sells the Lumenis urology laser portfolio in the U.S. and Japan through a distribution arrangement. After completing the acquisition, Boston Scientific said it would sell the lasers and fibers, as well as the otolaryngology laser portfolio, to all geographies including high-growth regions such as China.

Boston Scientific said it expects to complete the transaction in the second half of the year, with the impact to its adjusted earnings per share forecast to be immaterial in 2021 but is expected to boost EPS by roughly two cents in 2022 and be increasingly accretive thereafter. Due to amortization expense and acquisition-related net charges, it said the purchase is expected to weigh on earnings this year and then be less dilutive or increasingly accretive thereafter.


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(END) Dow Jones Newswires

March 03, 2021 07:33 ET (12:33 GMT)

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