Shares of Hologic (HOLX) - Get Report posted healthy gains Wednesday after the medical technology company announced a $205 million deal to sell its Cynosure aesthetics division, which sells a range of health and cosmetic treatments, from hair removal to non-invasive body contouring.
Hologic's stock price jumped 3.16% to $48.64 a share after the Marlborough, Mass.-based company announced it had inked an agreement to sell Cynosure to managed equity firm Clayton, Dubilier & Rice.
After closing adjustments, Hologic expects to net $138 million.
The decision to sell comes two years after Hologic bought Cynosure for $1.65 billion, a period during which the medical aesthetics company "has significantly underperformed our expectations," said Steve MacMillan, Hologic's chairman, president and CEO, in a press statement.
By selling Cynosure, Hologic said it plans to refocus on its core business of developing medical technology aimed at improving women's health through early disease detection.
"We believe this transaction will unlock value for Hologic shareholders, and at the same time provide Cynosure and its employees the best opportunity to succeed in the medical aesthetics marketplace," MacMillan said.
The deal is expected to close by year end, with 825 employees transferring with Cynosure with the sale, company officials said.