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CD&R’s portfolio to get a nip and tuck with Cynosure deal
Posted on Thursday, 21 November 2019 09:23
Clayton, Dubilier & Rice (CD&R) have agreed to acquire US-based medical aesthetics technology company Cynosure from Hologic for USD 205.00 million in cash.
Subject to regulatory approvals and customary conditions, the deal is due to complete around the end of 2019.
Upon closing, about 825 of Cynosure’s employees will transfer over to CD&R.
Hologic expects net cash proceeds of around USD 138.00 million from the sale, which is part of the vendor’s strategy to focus on its early disease detection operations for women.
Massachusetts-headquartered Cynosure develops and manufactures a range of treatment applications for hair removal, gynaecological health and body contouring, among others.
The group also provides non-invasive procedures for skin conditions such as acne scars, rosacea and cellulite.
Cynosure’s products are sold across 130 countries worldwide and offers technical, clinical and support services to its partners.
For the quarter ended 28th September 2019, Hologic’s medical aesthetics division, which is comprised solely of the target, posted revenue of USD 76.90 million, up 8.2 per cent from USD 70.60 million in the corresponding period of 2018.
Derek Strum, a partner at CD&R, said the company plans to grow Cynosure via expanded sales and marketing activities to bring new treatments and technologies to market.
Upon closing, Johnson & Johnson’s former worldwide group chairman, Sandi Peterson, will become the chairman of the target’s board.
The deal with Cynosure represents another addition to CD&R’s healthcare portfolio, which includes the likes of Healogics, PharMEDium and Carestream Dental.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 437 deals targeting electromedical and electrotherapeutic apparatus manufacturers announced worldwide since the beginning of 2019.
In the most valuable of these in the year to date, US-based Fortive raised USD 1.44 billion through a private placement of shares.
Other companies targeted in this sector include Vastec Medical, Braster and Danaher.
© Zephus Ltd