Allow Me to Reintroduce Myself: Hologic Gets Back to Basics After Cynosure

Women’s Health company, Hologic seems to be finished with “big” medtech acquisitions for the near future – instead, turning to tuck-in deals to drive growth. In a presentation titled “Reintroducing a Unique Asset in Women’s Health, the Marlborough, MA-based company’s CEO Steve MacMillan spoke to investors and analysts Monday during the 38th annual J.P. Morgan Healthcare Conference. “We 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,” MacMillan said. Hologic’s 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 Hologic’s 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. “Divesting Cynosure did remove that overhand,” he said. “Obviously a deal we would not do again, but we also recognized it, took action and moved forward.â€...
Source: MDDI - Category: Medical Devices Authors: Tags: Business Source Type: news