Private equity heavyweights TPG and Blackstone have tabled a proposal to acquire US-based medical technology firm Hologic in a take-private transaction valued in excess of $16bn, according to a report by the Financial Times citing sources familiar with the matter.
The indicative, non-binding offer reportedly valued Hologic at between $16.3bn and $16.7bn, inclusive of debt, with a per-share price of $70 to $72 – representing a significant premium to the company’s last closing price of $54.28 prior to the news breaking.
Hologic is understood to have recently rejected the approach, though sources indicated that a potential revival of negotiations has not been ruled out. The transaction, if pursued, would rank among the largest leveraged buyouts of the year.
Hologic, a specialist in diagnostics and imaging systems for women’s health, including breast cancer screening equipment, has seen its shares decline by approximately 24% year-to-date, driven by macroeconomic headwinds, including the impact of US tariffs and moderating demand across key product lines. Shares surged more than 15% to $62.67 following initial reports of the buyout offer.
The bid underscores sustained appetite among financial sponsors for large-cap transactions, despite an uncertain economic backdrop marked by trade-related disruptions.
The proposed Hologic deal follows a series of high-profile take-privates and corporate carve-outs, including Sycamore Partners’ proposed $24bn buyout of Walgreens Boots Alliance, Thoma Bravo’s $10.6bn acquisition of Boeing’s software division, and 3G Capital’s $10.5bn take-private of Skechers.
Hologic’s stock traded above $83 as recently as August last year. However, the company has since issued downward revisions to its profit outlook, citing tariff pressures affecting operations in key manufacturing regions such as China and Costa Rica.
In its most recent quarterly update, management highlighted strength in its molecular diagnostics business – which includes sexual health and Covid testing products – although this was offset by weakness in its breast health segment.
The company has long been viewed as a potential acquisition target, notably since activist investor Carl Icahn amassed a 12.5% stake in 2013, prompting the adoption of a poison pill defence and the eventual appointment of MacMillan under a board-level settlement. Icahn exited the board in 2016, but the company has remained on sponsor radars since.
Both TPG and Blackstone have an extensive track record in the healthcare sector. The pair previously joined forces in a bid to acquire eyecare company Bausch + Lomb, although discussions ultimately collapsed following Blackstone’s withdrawal from the consortium.
