Interventional device manufacturer Boston Scientific reported that it has completed its exploration of an initial public offering (IPO) of a minority interest in its endosurgery group. Boston Scientific will continue whole ownership of the group.
On March 12 this year, Boston Scientific announced it intended to explore the benefits that might be gained from operating the Endosurgery group as a separately traded public company that would become a majority-owned subsidiary of the of Natick, Mass.-based firm.
"We believe we can create more shareholder value with the endosurgery group remaining wholly owned by Boston Scientific, and we have concluded that an IPO would have reduced -- rather than enhanced -- Boston Scientific's shareholder value,” said Jim Tobin, Boston Scientific’s president and CEO. The benefits of retaining the endosurgery group clearly outweigh those offered by the sale of a minority interest."
The endosurgery group is expected to generate more than $1.4 billion in revenue this fiscal year, the company said.