17 February 2017

Hologic to acquire aesthetics firm Cynosure

Hologic has agreed to acquire Nasdaq-listed Cynosure by April this year as it looks to tap the beauty industry for further growth. The deal, which has been approved by the boards of both companies, can be valued at USD 1,440 million, including debt and net of cash. The offer price of USD 66 apiece represents a 28.2 per cent premium over Cynosure’s close of USD 51.50 on 13th February, the last trading day prior to the announcement. According to Zephyr, the M&A database published by Bureau van Dijk, this is Hologic’s first acquisition since its USD 3,743 million purchase of Gen-Probe, a nucleic acid testing system provider, in 2012.

Based in Massachusetts, Cynosure develops laser-based aesthetic and medical treatment systems that facilitate minor procedures, such as hair removal, scar reduction and skin revitalisation, carried out by plastic surgeons and dermatologists. Apart from the US, its products are also available in more than 100 countries, including the UK, Australia and China.

Hologic’s chief executive Steve MacMillan, who sees the medical aesthetics industry as complementary to his firm’s business, commented: “Acquiring Cynosure will accelerate our transformation into a higher-growth company by leveraging our core women's health expertise and OB/GYN channel leadership into an adjacent, cash-pay segment that is expanding at a low double-digit rate.”

The announcement came just weeks after Hologic sold its stake in a blood imaging systems developer to its joint venture partner Grifols Diagnostic Solutions, which subsequently took full control of the firm. MacMillan reckons the USD 1,850 million divestment will give Hologic more financial flexibility and allow his company to focus on earnings growth. He also added: “We believe that the business and our blood screening employees are best positioned to succeed under a single owner, and that this sale to Grifols provides excellent value for Hologic and our shareholders.”

Another notable deal in the aesthetics industry this week is Allergan’s planned acquisition of Nasdaq-listed ZELTIQ. The Irish pharmaceutical group has offered a consideration of around USD 2,475 million for the deal, representing a 14.4 per cent premium over the target’s market capitalisation as of 10th February, the last trading day before the announcement.

Based in California, ZELTIQ develops non-invasive fat reduction technology and is currently backed by shareholders, including venture capitalists Frazier Management and ATV Capital. Its flagship product Coolsculpting, which is available in 70 countries globally, works by freezing and killing fat cells beneath the skin with precisely controlled cooling. Allergan’s agreement to buy ZELTIQ followed its acquisition of soft tissue repair technology provider LifeCell, which took place early this month and cost the purchaser around USD 2,900 million.

© Zephyr