Boston Scientific buys Minnetonka line in $1.65B deal

Medical device maker Boston Scientific is buying a Minnetonka firm's men's and prostate health business for about $1.65 billion.

American Medical Systems provides treatments for enlarged prostates, erectile dysfunction, urinary incontinence and other conditions. Its men's health business had about $400 million sales last year.

Boston Scientific CEO Mike Mahoney told analysts that AMS fits well with Boston Scientific's urology business.

"We are creating a nearly $1 billion global market leader, with market-leading positions across the five major segments, including stone management, erectile restoration, BPH treatment, male urinary incontinence and pelvic floor repair," Mahoney said.

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BMO Capital Markets analyst Joanne Wuensch said the deal boosts Boston Scientific's urology business.

"It makes more of the operation that's there and builds out the operation that they have," Wuensch said. "It's a reasonably priced asset for them and further diversifies the portfolio. So, I think it's a very good pickup for them."

The AMS business line that Boston Scientific is buying has about 275 Minnesota employees.

This is first big deal for Massachusetts-based Boston Scientific since it bought Twin Cities-based Guidant for $27 billion in 2006.

The deal does not include AMS' women's health business, which faced regulatory scrutiny and lawsuits because of problems with its transvaginal surgical mesh products.