Private equity groups TPG and Blackstone have taken a way to privately privatize holographically, which can buy U.S. medical technology groups for more than $16 billion, according to people familiar with the matter.
People say Hologic has rejected uncombined offers in recent weeks, which will value the group’s $16.3 billion to $16.7 billion, including debt.
The proposed deal will be one of the largest leveraged buyouts of the year, and if it moves forward, it estimates Hologic's stock to $70 to $72, which is a highly premium of $54.28 on Friday's closing price.
People say that despite Hololic rejecting the proposal, negotiations on the deal may resume. As the company struggles to cope with the impact of tariffs and slowing demand, HOTOLIC specializes in the diagnosis of women's health, including mammograms, and its stock price has dropped by about 24%. Stocks jumped more than 15% to $62.67 after the Financial Times quote.
Hologic did not immediately respond to a request for comment. Blackstone and TPG declined to comment.
The approach shows that private equity groups are still looking for big deals despite tariffs released by U.S. President Donald Trump.
As sponsors invest assets in public markets, it follows a range of other private transactions and corporate phase-outs. One of the largest private deals is Sycamore Partners’ acquisition of Walgreens Boots Alliance up to $24 billion, Thoma Bravo’s $10.6 billion acquisition of Boeing’s software units and $10.5 billion wholesale of 3G Capital’s Skechers.
Hologic's shares rose in its most recent all-time high of more than $83 last August, but the company has struggled since. On quarterly results early this month, Hologic cut its profit outlook, citing the impact on U.S. tariffs on China and two important manufacturing hubs.
In the second quarter, Hologic benefited from revenue growth in its molecular diagnostics division, which allowed sexual health and Covid-19 testing kits and more, but this was eased by revenue from its breast health division. CEO Steve Macmillan told investors that “it was a turbulent few months from a macroeconomic and policy perspective” but the company “takes a step in the right direction.”
Since radical investor Carl Icahn established a 12.5% stake in 2013, Hologic has long been designated as a takeover candidate, forcing the company to take a "poison" acquisition defense. Icahn eventually won two board seats and maintained board representatives until 2016. Macmillan was awarded the job leading the company after reaching a settlement with Icahn in 2013.
TPG and Blackstone are continuous investors in the healthcare sector. Last year, they collaborated to bid for Eyecare Company Bausch + Lomb, but negotiated after Blackstone left the consortium.