The acquisition of Israeli surgical, ophthalmology and aesthetic applications company Lumenis Ltd. (Nasdaq: LMNS) by Chinese private equity fund XIO has been completed for $510 million. Lumenis shareholders will receive $14 per share, a 16% premium on the Nasdaq share price on the day that the deal was announced.
As expected, the Lumenis share price has since gained ground and yesterday it closed at $13.76 per share, giving a market cap of $496 million. With the completion of the deal, the company will now be delisted from Nasdaq.
As part of the completion of the deal, Lumenis received a $100 million loan from Mizrahi Tefahot Bank (TASE:MZTF). At the end of the first quarter, Lumenis also had $105 million in cash.
China's XIO is a global fund, which manages assets worth $3 billion.
Lumenis is one of the longest-established and leading companies in Israel's aesthetic medical market, which has undergone many upheavals over the years. The company was first listed on Nasdaq in the 1990's but after losing much of its value, and accumulating debts, and failing to file reports on time, it was delisted in 2006. Subsequently it was acquired by Viola group and Ofer Hi-Tech (today XT Group) and other investors who injected $120 million into the company.
Under its most recent CEO, Tzipi Ozer Armon, a former senior executive at Teva Pharmaceuticals, the company recorded higher revenue and profit from year to year.
The completion of today's exit has brought handsome returns for the company's owners.
Published by Globes [online], Israel business news - www.globes-online.com - on October 12, 2015
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