Chinese conglomerate Fosun Pharma is reportedly in talks to acquire minimally invasive procedure player Lumenis ($LMNS) for $480 million. As expectations of the deal leaked, Lumenis has gained about 14% to a market cap of around $410 million.
This wouldn't be the first Israeli laser device producer acquired by Fosun. In 2013, it acquired Alma Lasers for up to $240 million and the company is expected to combine the two. Fosun told the Israeli business newspaper Globes late last year that it was looking for a strategic partner in Israel.
Lumenis markets minimally invasive surgical, ophthalmology and aesthetic devices that use energy-based technologies including laser, intense pulsed light and radio-frequency.
It is a profitable company that expects to have revenues of $285 million to $287 million in 2014, an increase of 7% to 8% over 2013. It anticipates net income of $18.1 million to $19.6 million for last year.
At Sept. 30, Lumenis had $99.1 million in cash. Lumenis relisted on Nasdaq in early 2014 in a $75 million offering after being delisted in 2006.
|Lumenis CEO Tzipi Ozer-Armon|
"We posted our third consecutive quarter of over 9% revenue growth and new products generated over 15% of product revenues," Lumenis CEO Tzipi Ozer-Armon said in a November statement.
She continued, "In our aesthetics business specifically, strong demand for our new products, ResurFX for nonablative skin resurfacing and the LightSheer Desire for next generation hair removal, helped generate high double-digit revenue growth."