Clayton, Dubilier & Rice to Acquire Market-Leading Medical Aesthetics Technology Company

Carveout Transaction Positions Cynosure for Accelerated Growth Under New Ownership

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Nov 20, 2019, 07:30 ET

NEW YORK, Nov. 20, 2019 /PRNewswire/ -- Clayton, Dubilier & Rice today announced an agreement under which CD&R-managed funds will acquire Cynosure, LLC, a leader in medical aesthetics systems and technologies, from Hologic, Inc. (NASDAQ:HOLX).

Cynosure develops, manufactures, and markets medical aesthetic treatment systems for dermatologists, plastic surgeons, medical spas, and other healthcare practitioners. The company's broad portfolio of products spans several major categories, including skin revitalization, body contouring, hair removal, and women's health. Cynosure sells its products through a combination of direct sales and distributors in over 130 countries and supports its provider partners with a range of technical, clinical, and support services.

Medical aesthetics is a large market expected to experience continued robust growth with strong macro tailwinds and penetration runway driven by the increasing importance of appearance as a result of social media culture, broader awareness of treatment options across demographics, technological enhancements that allow for safe, effective non-invasive procedures, and a larger pool of healthcare professionals and medical spas offering aesthetic medical services.

"Cynosure is a market leader with a comprehensive product portfolio and a track record of more than 25 years of science-driven healthcare innovation," said CD&R Partner Derek Strum. "In addition to a targeted tuck-in acquisition strategy, we expect to continue to invest behind the company's strong brand and large global installed base to accelerate growth via expanded sales & marketing efforts and bring new products and technologies to market that both enhance the company's value proposition to its channel partners and improve clinical outcomes for end consumers."

"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," said CD&R Partner Sandi Peterson. "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."

Upon the closing of the transaction, which is expected around the end of calendar 2019, Ms. Peterson, former Group Worldwide Chairman of Johnson & Johnson, will become Chairman of Cynosure's Board of Directors.

UBS Investment Bank has committed to provide debt financing as part of the transaction and is acting as financial advisor to CD&R. Barclays and Credit Suisse are also acting as financial advisors and Debevoise & Plimpton LLP is acting as legal advisor to CD&R. Goldman Sachs is serving as financial advisor and Wachtell, Lipton, Rosen & Katz is acting as legal advisor to Hologic.

About Cynosure

Cynosure develops, manufactures and markets aesthetic treatment systems that enable plastic surgeons, dermatologists and other medical practitioners to perform non-invasive and minimally invasive procedures to remove hair, treat vascular and benign pigmented lesions, remove multi-colored tattoos, revitalize the skin, reduce fat through laser lipolysis, reduce cellulite, clear nails infected by toe fungus, ablate sweat glands and improve women's health. Cynosure's product portfolio is composed of a broad range of energy sources including Alexandrite, diode, Nd: YAG, picosecond, pulse dye, Q-switched lasers, intense pulsed light and RF technology. Cynosure sells its products globally under the Cynosure, Palomar, ConBio and Ellman brand names through a direct sales force in the United States, Canada, France, Morocco, Germany, Spain, the United Kingdom, Australia, China, Japan and Korea, and through international distributors in approximately 130 other countries. For corporate or product information, visit Cynosure's website at www.cynosure.com.

About Clayton, Dubilier & Rice

Founded in 1978, Clayton, Dubilier & Rice is a private investment firm. Since inception, CD&R has managed the investment of $28 billion in 86 companies, including numerous consumer health and medical device businesses. CD&R has offices in New York and London. For more information, visit www.cdr-inc.com.

SOURCE Clayton, Dubilier & Rice