TPG and Blackstone offered $16bn to take health group Hologic private

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Private equity groups TPG and Blackstone made an approach to take Hologic private, offering to purchase the US medical technology group for more than $16bn, according to people familiar with the matter.

Hologic in recent weeks rejected the nonbinding offer, which would value the group at $16.3bn to $16.7bn including debt, the people said.

The proposed deal, which would be one of biggest leveraged buyouts of the year if it moves forward, would value Hologic’s shares at $70 to $72, a significant premium to Friday’s closing price of $54.28.

While Hologic declined the offer, there is still a chance deal talks could be revived, the people said. Hologic, which specialises in diagnostics for women’s health, including breast mammography machines, has been hit by a roughly 24 per cent fall in its share price so far this year, as the company grapples with the effects of tariffs and slowing demand.

Hologic and TPG did not immediately respond to requests for comment. Blackstone declined to comment.

The approach shows that private equity groups are still on the hunt for large deals despite the market turmoil unleashed by President Donald Trump’s tariff policy.

It follows a volley of other take-private deals and corporate carve-outs as sponsors swooped on assets on the public markets. Among the biggest take-private deals were Sycamore Partners’ up to $24bn takeover of Walgreens Boots Alliance, Thoma Bravo’s $10.6bn buyout of Boeing’s software unit and 3G Capital’s $10.5bn acquisition of Skechers.

Hologic’s share price was nearing an all-time high of more than $83 as recently as August last year, but the company has struggled since. At its quarterly results earlier this month, Hologic cut its profit outlook, citing concerns over the impact on US tariffs on China and Costa Rica, two important manufacturing hubs.

In the second quarter, Hologic benefited from revenue growth in its molecular diagnostics division, which makes sexual health and Covid-19 testing kits, among others, but that was offset by waning revenues in its breast health division. Chief executive Steve MacMillan told investors it had “been a tumultuous few months from a macroeconomic and policy perspective” but the company was taking “a step in the right direction”.

Hologic has long been earmarked as a takeover candidate since activist investor Carl Icahn built a 12.5 per cent stake in 2013, forcing the company to adopt a “poison pill” takeover defence. Icahn eventually gained two board seats and maintained board representation until 2016. MacMillan was given the job leading the company following a settlement with Icahn in 2013.

TPG and Blackstone are serial investors in the healthcare sector. Last year, they teamed up on a takeover bid for eyecare company Bausch + Lomb but talks fell through after Blackstone withdrew from the consortium, the Financial Times previously reported.