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Boston Scientific Announces Agreements to Sell Non-Strategic Investments

Posted on June 19, 2008 @ 09:59 am



Boston Scientific Corporation announced that it has signed a definitive agreement to sell its investments in a portfolio of companies, subject to certain closing and other conditions, to Saints Capital, a leading secondary direct-investment firm. Boston Scientific said the transaction will raise more than $100 million in pre-tax proceeds, most of which will be in cash, with a portion in a note payable over several years.

The Company expects to record a net pre-tax loss of about $60 million ($40 million after-tax, or approximately $0.03 per share), consisting of an approximate loss of $85 million ($55 million after-tax, or approximately $0.04 per share) in the second quarter of 2008, to be offset by anticipated gains of $25 million ($15 million after-tax, or approximately $0.01 per share) during the remainder of 2008.

"The sale of these investments, which represent the vast majority of our private investment portfolio, is part of our previously announced plans to divest non-strategic assets, while focusing on our core businesses and increasing shareholder value," said Sam Leno, Chief Financial Officer of Boston Scientific. "We are pleased to be selling our investments in these companies to Saints Capital, a firm we believe has the experience and commitment to support them going forward."

Separately, the Company announced it has signed a definitive agreement to sell its investments in a portfolio of venture funds and companies, subject to certain closing and other conditions, to Paul Capital Partners, a leader in the private equity secondary market, for pre-tax proceeds in excess of $40 million. The Company expects to record a net pre-tax loss of approximately $10 million ($6 million after-tax) on the transaction, primarily in the second quarter of 2008.

"The net after-tax cash proceeds will be used principally to pay down debt, and consistent with previous divestitures of non-strategic assets, these expected net gains and losses will be excluded from our adjusted earnings per share," added Leno.

Boston Scientific is a worldwide developer, manufacturer and marketer of medical devices whose products are used in a broad range of interventional medical specialties.

SOURCE: PR Newswire