Change is in the air for Cynosure and Lumenis
Both Cynosure and Lumenis look set to change hands in the near future, following the Hologic (owner of Cynosure) announcement and speculation around XIO (owner of Lumenis) recently.
Hologic, Inc. (Nasdaq: HOLX) announced on 20 November that it has entered into a definitive agreement to sell its Cynosure medical aesthetics business to an affiliate of investment funds managed by Clayton, Dubilier & Rice for a total purchase price of $205 million in cash, subject to certain closing adjustments. Net of these adjustments, Hologic expects net cash proceeds of approximately $138 million.
“Divesting our medical aesthetics business will enable us to focus on what we do best – helping women and their families live healthier lives through early detection of disease,” said Steve MacMillan, the Company’s Chairman, President and Chief Executive Officer. “Since we acquired Cynosure in 2017, it has significantly underperformed our expectations. We believe this transaction will unlock value for Hologic shareholders, and at the same time provide Cynosure and its employees the best opportunity to succeed in the medical aesthetics marketplace. Moving forward, our business development strategy remains focused on the smaller, tuck-in deals that have been performing well for us and strengthening our core franchises.”
Under the terms of the agreement, approximately 825 employees will transfer with the Cynosure business. The transaction is expected to close around the end of calendar 2019, subject to regulatory approvals and other customary conditions.
In the meantime, private equity fund XIO is set to sell Israeli medical device and equipment company Lumenis to the UK’s CVC Capital Partners for nearly $1 billion, Israeli financial news websites reported on Wednesday. Citing two unnamed sourced, the Calcalist news site said the deal will be valued at around $950 million and is expected to close in the next few weeks. The Globes news site said the price will be close to $1 billion.