Big Money Moves: Blackstone's Latest Healthcare Bet
A Major Healthcare Industry Shake-Up
Blackstone, a leading private equity firm, has made a significant stride in the healthcare sector by acquiring Hologic, a prominent manufacturer of women's health medical devices, for a staggering $18 billion. This acquisition is one of the largest deals of the year.
Blackstone's Healthcare Expansion
Blackstone has been actively investing in healthcare and life sciences for some time. They own multiple lab properties in Massachusetts and have stakes in several drug companies. With this acquisition, they are now venturing into the medical devices market.
About Hologic
- Founded: 40 years ago
- Employees: Approximately 7,000
- Products: Mammography and biopsy equipment
The Deal Details
Blackstone partnered with TPG, another private equity firm, and the Abu Dhabi Investment Authority to close this deal. The acquisition is valued at up to $18.3 billion, which includes:
- Purchase of all Hologic shares
- Assumption of Hologic's cash and debt
- Additional payments contingent on Hologic meeting future revenue targets
Hologic's Stock Performance
Hologic's stock experienced a surge during the COVID-19 pandemic but has since seen a slowdown. Despite this, Blackstone and TPG are paying a 46% premium on the stock price from a few months ago.
Post-Acquisition Plans
Hologic's headquarters will remain in Marlborough after the deal is finalized. Neither Hologic nor Blackstone has issued a public statement regarding the acquisition yet.
The Bigger Picture
This deal underscores Blackstone's commitment to expanding its footprint in the healthcare industry. While it's a substantial investment, it could yield significant returns if Hologic continues to grow.