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Boston Scientific plans to make a partial offer to acquire a majority stake of Acotec, a cardiovascular device company based in China.
December 12, 2022
1 Min Read
Image courtesy of Sundry Photography / Alamy Stock Photo
Boston Scientific didn't take the weekend off.
The Marlborough, MA-based company announced Sunday evening that it will make a partial offer to acquire up to 65% of shares of Acotec for $20 a share, which works out to be about $523 million for the 65% stake at current exchange rates.
Based in Beijing, China, Acotec's core product portfolio includes paclitaxel drug-coated balloons (DCBs). In 2016, the company launched the first peripheral DCB in China after receiving approval from the National Medical Products Administration. The company's portfolio also includes radiofrequency ablation technologies and thrombus aspiration catheters, as well as more than 20 other products in various stages of development across a range of specialties. In the 12-month period ending June 30, 2022, Acotec generated sales of RMB 339 million (roughly $53 million), growing 25% year-over-year in the first six months of 2022 with strong double-digit growth in each of the two years prior.
"Acotec is a profitable, fast-growing company with a strong portfolio and innovative pipeline of medical technologies, and we believe this investment will generate growth opportunities for both companies," said Art Butcher, executive vice president and group president of Boston Scientific's MedSurg and Asia Pacific businesses. "We expect completion of the partial offer to further strengthen our presence in China and create the potential for commercialization of Acotec products globally, providing an increased number of physicians and patients access to our robust and complementary product portfolios."
The deal is expected to be completed in the first half of 2023.
While merger and acquisition activity has been sluggish through most of 2022, there have been signs of M&A picking up as the year draws to an end. Just a few weeks ago, Boston Scientific agreed to buy Apollo Endosurgery for $615 million.
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