Hologic Set to Divest ‘Underperforming’ Cynosure

Hologic is divesting its Cynosure business for $205 million, two years after it acquired the medical aesthetics company for $1.65 billion. Cynosure will be acquired by an affiliate of investment funds managed by Clayton, Dubilier & Rice and the deal is expected to close around the end of this year. Hologic said it expects to net cash proceeds of about $138 million from the deal. Marlborough, MA-based Hologic has struggled with Cynosure since the beginning. While other segments within Hologic performed well, it was the aesthetics unit that nearly always underperformed and in one earnings quarter caused the firm to drop revenue guidance. Under the terms of the agreement, about 825 employees will transfer with the Cynosure business. Hologic also announced today that it intends to enter into an accelerated share repurchase (ASR) program to buy back $205 million of the company’s common stock. In many ways, divesting Cynosure, helps Hologic focus more squarely on what made it successful – and that is developing products geared toward improving women’s health and well-being through early detection and treatment. "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, Hologic’s Chairman, president, and CEO. "Since we acquired Cynosure in...
Source: MDDI - Category: Medical Devices Authors: Tags: Business Source Type: news