The deal will lead in the merger of Minnetonka-based American Medical Systems’ men’s urologic products with Boston’s existing line of devices for female urologic conditions.
Boston Scientific is expanding its Twin Cities Workforce, resulting in the acquisition of Minnetonka-based American Medical Systems’ men’s urology business for the amount of 1.65 billion dollars from Endo International PLC.
“The deal will combine AMS’ men’s urologic products with Boston’s existing line of devices for female urologic conditions, creating a division that will include five market-leading devices,” Boston Scientific Urology and Women’s Health President Karen Prange said.
“It’s really about creating category leadership in a strong market,” Prange said in an interview. The new division is expected to generate nearly $1 billion in annual sales.
Boston is buying the laser-therapy systems of Endo in order to treat benign prostatic hyperplasia, which is a common form of prostate enlargement, and the devices for erectile dysfunction and male stress urinary in continence. The business unit had around 800 employees and sales of 400 million dollars in 2014.
The all-cash deal is expected to close this fall, pending regulatory approval and usual closing conditions.
Boston is not acquiring the litigation-racked line of mesh devices for treatment of female pelvic organ prolapse and stress urinary incontinence by Endo since it already manufactures good quality devices, and faces its own set of 20,000 or so injury claims from women.
In the year of 2014, the AMS men’s health and prostate health divisions created an operating income of 60 million dollars.