American Medical Systems ( AMMD) agreed to sell its aesthetics division to Iridex ( IRIX) in a deal worth up to $37 million.

Iridex will pay American Medical $28 million at the close of the transaction, plus up to an additional $9 million for any remaining inventory at the end of a six- to nine-month manufacturing-transition period. The sale is expected to close no later than Jan. 31.

American Medical will use the proceeds from the sale to pay down long-term debt.

"Importantly, for the customers and the employees of our aesthetics division, Iridex is a company with a history of success in this field," said Martin Emerson, the company's president and CEO in a press release Friday. "I am further encouraged by the fact that Iridex is fully committed to building upon the reputation and relationships that have been built across the globe by our aesthetics employees."

If you liked this article you might like

Nationwide Egg Recall Expanded

10 Toy Fads That Have Faded

Boomers Feel Recession Burden, Blame

KFC Franchisees Want 'Fried' to Be the Focus

Heavy Weights: More Expensive, Less Effective