Hologic expects to garner net cash proceeds of about $138m from this sale. Credit: Hologic

Diagnostic products developer Hologic has agreed to sell its Cynosure medical aesthetics business for a total cash consideration of $205m.

Hologic, which acquired Cynosure two years ago for $1.65bn, is selling the venture to an affiliate of investment funds managed by Clayton, Dubilier & Rice.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Cynosure’s portfolio includes 20 products across non-invasive body contouring, hair removal, skin revitalisation and women’s health categories, marketed through direct sales and distributors in more than 130 countries.

Subject to certain closing adjustments, Hologic expects to garner net cash proceeds of about $138m from this sale.

Under the agreement, the company will transfer approximately 825 employees with the Cynosure business.

Commenting on the move, Hologic chairman, president and CEO Steve MacMillan said: “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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“Since we acquired Cynosure in 2017, it has significantly underperformed our expectations. We believe this transaction will unlock value for Hologic shareholders and at the same time provide Cynosure and its employees the best opportunity to succeed in the medical aesthetics marketplace.”

“Moving forward, our business development strategy remains focused on the smaller, tuck-in deals that have been performing well for us and strengthening our core franchises.”

During the divestment process, Goldman Sachs is acting as financial adviser to Hologic, while Wachtell, Lipton, Rosen & Katz is serving as its legal counsel.

Credit Suisse and UBS are the financial advisors to Clayton, Dubilier & Rice and Debevoise & Plimpton is working as legal counsel.

Subject to regulatory approvals and other customary conditions, the deal is expected to close at the end of the year.

Furthermore, Hologic is planning to enter into an accelerated share repurchase (ASR) programme to buy back $205m of its common stock.