Clayton, Dubilier & Rice (CD&R), a New York-based private equity firm, has signed an all-cash deal worth $205 million to acquire Cynosure, a medical aesthetics technology company, from US medical device company Hologic.
Based in Massachusetts, Cynosure provides medical aesthetic treatment systems for plastic surgeons, dermatologists, medical spas and other healthcare practitioners.
Cynosure’s product portfolio features Alexandrite laser, diode, Nd: YAG laser, Q-switched lasers, intense pulsed light, picosecond, pulse dye, and RF technology. The medical aesthetic products are marketed under the Cynosure, Palomar, Ellman and ConBio brands.
Steve MacMillan – Hologic Chairman, President and CEO 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.
“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.”
Cynosure’s products cover the skin revitalization, hair removal, body contouring and women’s health categories.
Its aesthetic treatment systems can be used for conducting non-invasive and minimally invasive procedures for hair removal, removing multi-colored tattoos, to treat vascular and benign pigmented lesions, revitalize skin, and to lower fat through laser lipolysis.
Cynosure’s systems can also be used for reducing cellulite, ablate sweat glands, clear nails infected by toe fungus, and to enhance women’s health. The products of the medical aesthetics technology company are marketed in more than 130 countries through direct sales and distributors.
As per the deal terms, nearly 825 employees will transfer with the Cynosure business.
Sandi Peterson – Clayton, Dubilier & Rice Partner said: “The market for medical aesthetic devices is large and fragmented, with an attractive long-term outlook supported by strong demographic tailwinds, and Cynosure’s business model and channels align well with our extensive experience with similarly positioned consumer-medical device healthcare companies.
“We believe this business is a great fit with CD&R’s strategy of helping corporate divisions transition to freestanding enterprises and implementing growth and productivity initiatives to accelerate their performance.”
The deal, which is subject to regulatory approvals and other customary conditions, is likely to close by the end of the year.