The HydraFacial Co., best known for their technology that delivers an alternative to microdermabrasion, this month announced an agreement to merge with Vesper Healthcare Acquisition Corp.
Vesper Healthcare is special purpose acquisition company (SPAC) cofounded by Brent Saunders, former CEO of Allergan. The deal is expected to broaden HydraFacial’s global footprint in the beauty-health and medical aesthetics categories.
As part of the deal, which is projected to close mid-next year, HydraFacial will become a wholly owned subsidiary of Vesper Healthcare, as well as become a public company to be listed on NASDAQ. The agreement gives HydraFacial an enterprise value of $1.1 billion, consisting of $975 million payable upon completion and $75 million after certain acquisitions are completed by the combined company.
With additional funding will come from institutional investors, following the deal, HydraFacial CEO Clint Carnell will continue to head the company, and Brent Saunders will assume the role of executive chairman.
Vesper Healthcare, which went public in September, soon after targeted HydraFacial for acquisition. “HydraFacial is a category creating skin health company, and it sits at an intersection of skin and beauty where I think there’s explosive growth,” he said in a recent CNBC interview.
“It is a global and best-in-class brand that has so much more room for growth.” Additionally, he said that Vesper Healthcare will drive that growth by improving aesthetician education, investing in sales and marketing, and expanding HydraFacial’s product offerings.
The HydraFacial Co. under the new leadership of Mr. Carnell, and its 14-year-old brand was rejuvenated in 2017 by an infusion of private equity capital making it ripe for acquisition. Mr. Carnell as head of surgical for Bausch + Lomb in the 2000s was instrumental in the development of LASIK. In 2005, he joined Thermage as CEO and helped take the company public in 2006, leading to the creation of Solta Medical, which was later sold to Valeant Pharmaceuticals for $280 million.
Mr. Carnell has skillfully managed and scaled The HydraFacial Co.’s growth, where its non-invasive skin wellness platform has gained traction among consumers worldwide. This device also appeals to a broad range of providers, including day and resort spas, dermatology and plastic surgery clinics, as well as those working in other fields.
“We have a proven track record of growth in a large and expanding market,” Mr. Carnell said during the merger announcement. “We have developed a critical mass globally with over 15,000 delivery systems in operation, and our business model provides us with a recurring revenue stream from consumables. This, along with favorable demographic trends, supported by our experienced team which has been made even stronger by combining with Vesper Healthcare, has created a business model that we believe is well positioned to deliver sustained long-term growth.”