Private equity giants TPG and Blackstone have made a bold attempt to take US-listed medical technology company Hologic private, offering more than $16 billion in a deal that would rank among the year’s largest leveraged buyouts. However, as reported by the Financial Times, Hologic rejected the nonbinding proposal, though sources suggest talks may not be entirely off the table.
According to people familiar with the matter, the offer valued Hologic at between $16.3 billion and $16.7 billion, including debt. The proposed buyout would have priced Hologic shares at $70 to $72 each — a premium of roughly 30 percent over last Friday’s closing price of $54.28. Following the Financial Times revelation, Hologic shares surged more than 15 percent to close at $62.67, signaling strong investor interest in a potential deal.
Despite declining the offer, Hologic has not ruled out further negotiations. The company, known for its diagnostics and medical imaging products focused on women’s health — such as mammography machines and molecular testing kits — has seen its share price fall by around 24 percent so far this year. Tariffs, particularly those tied to President Donald Trump’s ongoing trade policy targeting China and Costa Rica, have added pressure to Hologic’s performance, alongside a slowdown in demand for some of its key products.
In its most recent quarterly results, Hologic cut its profit outlook, citing macroeconomic headwinds and tariff-related cost pressures. While the company reported revenue gains in its molecular diagnostics division — which includes Covid-19 and sexual health tests — those were offset by weakening sales in its breast health segment. Chief Executive Steve MacMillan admitted it had “been a tumultuous few months from a macroeconomic and policy perspective,” but emphasized that Hologic was making “a step in the right direction.”
The approach by TPG and Blackstone is the latest example of private equity’s continued appetite for major deals despite financial market turbulence. The buyout bid comes amid a flurry of take-private activity, with firms taking advantage of declining public valuations. Recent mega-deals include Sycamore Partners’ proposed $24 billion acquisition of Walgreens Boots Alliance, Thoma Bravo’s $10.6 billion purchase of Boeing’s software unit, and 3G Capital’s $10.5 billion buyout of Skechers.
Both TPG and Blackstone have a deep history of investing in the healthcare sector. The Financial Times previously reported that the duo attempted a joint acquisition of eyecare company Bausch + Lomb, although those talks collapsed after Blackstone exited the consortium.
Hologic, meanwhile, has a long-standing reputation as a takeover target. The company came under pressure in 2013 when activist investor Carl Icahn built a 12.5 percent stake, leading to the adoption of a “poison pill” strategy and a subsequent agreement that gave Icahn two board seats. MacMillan was appointed CEO later that year as part of the settlement.
While neither Hologic nor the private equity firms commented on the bid, the market’s reaction — and the strategic logic behind a take-private move — suggests this may not be the end of the story. With Hologic’s valuation depressed and private equity dry powder still plentiful, further approaches may be only a matter of time.
