Boston Scientific Buys Tissue Processing Capabilities And Takes Stake In Neovasc

(RTTNews) - Boston Scientific Corp. (BSX) agreed to acquire certain manufacturing assets and capabilities of the Neovasc Inc., (NVCN, NVC.TO) advanced biological tissue business, as well as a 15% equity stake in Neovasc, for a total of $75 million in cash.

The Neovasc advanced biological tissue business makes elements used in transcatheter heart valves, including the Boston Scientific Lotus Valve System.

Upon completion of the transaction, the Neovasc advanced biological tissue capabilities will be integrated into the Boston Scientific structural heart business for use in the manufacturing of the Lotus valve and future heart valve technologies.

The acquisition is expected to close by year-end 2016, subject to customary closing conditions, and to be immaterial to Boston Scientific earnings per share in 2016 and 2017 on an adjusted and GAAP basis.

Separately, Neovasc confirmed that Boston Scientific agreed to acquire Neovasc's tissue processing technology and facility for about US$67.91 million. Concurrently, Boston Scientific has committed to invest an additional US$7.09 million in Neovasc for a 15% equity interest in the Company.

As per the terms of the equity investment, Boston Scientific has agreed to purchase 11,817,000 common shares in the capital of Neovasc at a price of US$0.60 per Common Share, for gross proceeds of US$7.09 million, subject to required regulatory approvals, including approval of the Toronto Stock Exchange.

Neovasc plans to use the proceeds of these transactions for general corporate purposes.