Boston Scientific to acquire surgical business of Lumenis for $1.07B

Boston Scientific announced that it has entered into a definitive agreement with an affiliate of Baring Private Equity Asia, or BPEA, to acquire the global surgical business of Lumenis, a privately-held company that develops and commercializes energy-based medical solutions, for an upfront cash payment of $1.07B, subject to closing adjustments. BPEA will retain ownership of the Lumenis global aesthetics and ophthalmology businesses. With 2021 net sales anticipated to be approximately $200M, the Lumenis surgical business includes laser systems, fibers and accessories used for urology and otolaryngology procedures. Boston Scientific has had a relationship with Lumenis for more than 20 years and currently sells the Lumenis urology laser portfolio in the U.S. and Japan through a distribution arrangement. Upon completion of the acquisition, Boston Scientific will sell these lasers and fibers - as well as the otolaryngology laser portfolio - to all geographies including regions like China. The company expects to complete the transaction in the second half 2021, subject to customary closing conditions. The impact to adjusted earnings per share is expected to be immaterial in 2021, approximately two cents accretive in 2022 and increasingly accretive thereafter. On a GAAP basis, the transaction is expected to be dilutive in 2021 and less dilutive or increasingly accretive thereafter, as the case may be, due to amortization expense and acquisition-related net charges. Lumenis LTD is headquartered in Yokneam, Israel.