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Non-public fairness teams TPG and Blackstone made an method to take Hologic non-public, providing to buy the US medical expertise group for greater than $16bn, based on individuals aware of the matter.
Hologic in latest weeks rejected the nonbinding provide, which might worth the group at $16.3bn to $16.7bn together with debt, the individuals mentioned.
The proposed deal, which might be one among largest leveraged buyouts of the yr if it strikes ahead, would worth Hologic’s shares at $70 to $72, a major premium to Friday’s closing value of $54.28.
Whereas Hologic declined the provide, there’s nonetheless an opportunity deal talks may very well be revived, the individuals mentioned. Hologic, which specialises in diagnostics for ladies’s well being, together with breast mammography machines, has been hit by a roughly 24 per cent fall in its share value up to now this yr, as the corporate grapples with the consequences of tariffs and slowing demand.
Hologic and TPG didn’t instantly reply to requests for remark. Blackstone declined to remark.
The method reveals that non-public fairness teams are nonetheless on the hunt for big offers regardless of the market turmoil unleashed by President Donald Trump’s tariff coverage.
It follows a volley of different take-private offers and company carve-outs as sponsors swooped on belongings on the general public markets. Among the many largest take-private offers had been Sycamore Companions’ as much as $24bn takeover of Walgreens Boots Alliance, Thoma Bravo’s $10.6bn buyout of Boeing’s software program unit and 3G Capital’s $10.5bn acquisition of Skechers.
Hologic’s share value was nearing an all-time excessive of greater than $83 as lately as August final yr, however the firm has struggled since. At its quarterly outcomes earlier this month, Hologic reduce its revenue outlook, citing considerations over the impression on US tariffs on China and Costa Rica, two vital manufacturing hubs.
Within the second quarter, Hologic benefited from income progress in its molecular diagnostics division, which makes sexual well being and Covid-19 testing kits, amongst others, however that was offset by waning revenues in its breast well being division. Chief government Steve MacMillan advised traders it had “been a tumultuous few months from a macroeconomic and coverage perspective” however the firm was taking “a step in the correct course”.
Hologic has lengthy been earmarked as a takeover candidate since activist investor Carl Icahn constructed a 12.5 per cent stake in 2013, forcing the corporate to undertake a “poison capsule” takeover defence. Icahn finally gained two board seats and maintained board illustration till 2016. MacMillan was given the job main the corporate following a settlement with Icahn in 2013.
TPG and Blackstone are serial traders within the healthcare sector. Final yr, they teamed up on a takeover bid for eyecare firm Bausch + Lomb however talks fell via after Blackstone withdrew from the consortium, the Monetary Instances beforehand reported.