US group in £3.3bn swoop for UK medical firm

US medical-devices manufacturer Boston Scientific has agreed to acquire British rival BTG for £3.3 billion.

Under the terms of the deal, Boston Scientific will pay 840p cash for each BTG share, a 37% premium on the closing price of 615p on Monday.

Shares in FTSE 250-listed BTG jumped 34% in early trading yesterday following the announcement.

BTG said its directors consider the Boston Scientific offer to be fair and reasonable and intend to recommend unanimously that shareholders vote in favour of the takeover.

Michael Mahoney, chairman and chief executive of Boston Scientific, said: “The acquisition of BTG and its rapidly growing peripheral interventional portfolio is an exciting extension of our category leadership strategy that will augment our capabilities in important areas of unmet need, such as cancer and pulmonary embolism.

“We are confident that the addition of these therapies to our portfolio will ultimately advance patient care in ways that could not be realised by either company alone.

“It will also allow us to realise substantial synergies and provide a strong return for investors.”

Boston Scientific has received the backing of investors representing 33.1% of BTG’s share capital, including Invesco Asset Management, Novo Holdings and Woodford Investment Management.

BTG, which manufactures polymer beads for treating cancer tumours and drugs for treatment of snake venoms, earlier in November posted 10% yearon-year growth in product sales for the first half.

The company’s pre-tax profit for six months to September 30 rose 47% to £68.1 million from £46.5m the year prior, helped by the rise in revenue as well as a 30% drop in selling, general and administrative expenses.

Revenue grew 12% year-on-year to £386.1m.