Allow Me to Reintroduce Myself: Hologic Gets Back to Basics After Cynosure
Womenâs Health company, Hologic seems to be finished with âbigâ medtech acquisitions for the near future â instead, turning to tuck-in deals to drive growth. In a presentation titled âReintroducing a Unique Asset in Womenâs Health, the Marlborough, MA-based companyâs CEO Steve MacMillan spoke to investors and analysts Monday during the 38th annual J.P. Morgan Healthcare Conference.
âWe intend to deploy our strong-free cashflow more aggressively on growth accretive tuck-in deals, not huge deals ⦠and also on share buybacks because we believe in our future,â MacMillan said.
Hologicâs board announced on Sunday the approval of a new $500 million share repurchase program.
The switch to smaller deals is perhaps a direct result of Hologicâs acquisition and subsequent divestiture of Cynosure. Hologic acquired Cynosure for $1.65 billion in 2017 but divested the company to an affiliate of investment funds managed by Clayton, Dubilier & Rice for $205 million. The medical aesthetics business had been draining for Hologic and constantly under-performed.
âDivesting Cynosure did remove that overhand,â he said. âObviously a deal we would not do again, but we also recognized it, took action and moved forward.â...
Source: MDDI - Category: Medical Devices Authors: Omar Ford Tags: Business Source Type: news