Two years after spending $1.7B, Hologic sells subsidiary for $205M
Photo | Grant Welker
Hologic's Marlborough headquarters
Marlborough medical technology company Hologic has agreed to sell its medical aesthetics unit for $205 million, it announced Wednesday.
The division, Cynosure, is being sold to an affiliate of investment funds managed by New York private equity company Clayton, Dubilier & Rice. Hologic said it expects net cash proceeds of around $138 million after closing adjustments.
Selling Cynosure will enable Hologic to focus on its medical products for women, said Steve MacMillan, Hologic's chairman, president and CEO, in a statement. Hologic acquired Cynosure for $1.65 billion in February 2017, and MacMillan said the unit significantly underperformed expectations.
Hologic said approximately 825 employees with Cynosure, which is based in Westford, will transfer with the Cynosure business, with the deal expected to close around the end of the year, subject to regulatory approvals. The company didn't say whether those Cynosure employees would be relocated.
In morning trading Wednesday, Hologic shares were trading up nearly 3.4% after news of the planned sale.
Hologic also said Wednesday it will buy back $205 million of its common stock. That purchase is in addition to another $211 million already authorized by the company's board of directors.
Hologic has been among the largest public companies in Central Massachusetts that have increased their stock buybacks since a 2017 federal tax change led to a spike in such purchases nationally. Hologic said in September its $491 million of buybacks since 2017 were made to cover employee tax withholding obligations under its equity incentive plans.
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