Devices Pique Private Equity's Interest
Reprinted from IN VIVO, April 2008
The spate of recent carve-outs from Boston Scientific has private equity and venture capital investors hungry for similar deals from across the industry. But device companies don't seem to be serving up much.
Summary
Boston Scientific's strategy to divest non-core assets is feeding private equity investors hungry to do deals in the medical device industry.
Private equity investors face a challenge in convincing other large medical device companies to make big deals, but smaller ones are getting done.
Avista Capital Partners sees big opportunity in the spinouts of its two BSX divisions.
TriVascular2, working in endovascular AAA repair, illustrates the promise—and challenges—of development-stage buyouts.
Boston Scientific Corp. has spent the last year carving itself up like a Thanksgiving turkey. The company—still working through a bloated feeling brought on by its $27 billion acquisition of Guidant Corp.—is slicing off the less desirable pieces of dark meat to a combination of private equity investors and strategic buyers, leaving itself with what it hopes will be the choice favorable stent and CRM businesses, the white meat so to speak. Click here to purchase this article or review the current issue.
