Breast imaging company Hologic unloads aesthetics line at $1B-plus loss
Women’s health and diagnostics company Hologic is selling its line of medical aesthetics products for $205 million, two years after purchasing them for more than $1 billion.
The Marlborough, Massachusetts-based technology company first announced plans to unload Cynosure in November, and completed the deal on Dec. 30. In an announcement, President and CEO Steve MacMillan said the divestiture will allow Hologic to focus on its core products, which include mammography systems and other breast imaging solutions.
"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," MacMillan said in a statement. "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.”
Hologic first acquired the Westford, Massachusetts company in 2017 at an equity value of $1.65 billion. At the time, officials noted the fast-growing nature of the medical aesthetics business, generating $2 billion in global sales. Cynosure’s line of products includes noninvasive body contouring, hair removal and skin revitalization systems, which are marketed toward dermatologists, plastic surgeons and other healthcare practitioners.
New York-based private equity firm Clayton, Dubilier & Rice is acquiring the aesthetics business for a total purchase price of $205 million in cash. Minus adjustments at closing, Hologic said it will net cash proceeds of about $142 million from the sale. About 825 Cynosure employees will transfer over with the sale.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.