Divestiture Returns Laserscope to Pure Laser Company

In a move to focus its energies on its medical laser business, Laserscope has sold its hospital equipment business unit to Heraeus Medical Inc., a newly established division of Heraeus Holding GmbH. Laserscope acquired the hospital equipment business, later renamed Ascent Medical Systems, as part of its 1996 acquisition of Heraeus Surgical Inc. from Heraeus Holding subsidiary Heraeus MED GmbH.

"Strategically, AMS did not fit with Laserscope's long-term plans," says president CEO Robert McCormick. "We believe the divestiture now will allow us to focus our energies on Laserscope's principal businesses and future opportunities."

Laserscope will receive approximately $1 million in cash, subject to the release of $200,000 from a related escrow account, and a settlement of $1.5 million in associated liabilities. Laserscope also said it expects to take a non-operating charge in the range of up to $1,000,000 in the current quarter directly related to the divestiture.