Hologic and Gen-Probe took additional steps this week to finalize their $3.72-billion merger by making decisions on front-office staff, business integration, and finance. On July 11 the companies announced that Carl Hull, chairman and CEO of Gen-Probe, will serve as senior vice president and general manager of the combined company’s diagnostics unit. Hull agreed to work in this executive capacity for a minimum of 15 months. The combined business will include Gen-Probe’s current operations and Hologic’s diagnostic segment. Hologic will also offer positions to other members of Gen-Probe’s management, according to the companies.
Integration planning teams for the two companies say they have made significant progress setting objectives, finding synergies, and developing schedules with key dates. After the final approval of the transaction, Hologic says it will begin critical integration plans and continue with additional phases over the following 24 months. The deal is expected to close around August 1, 2012.
On the financial side, Hologic launched syndication of three committed senior secured credit facilities to provide a significant portion of the financing required to acquire Gen-Probe. The facilities will total $3.05 billion, are subject to adjustment, and require completion of certain conditions. A special meeting of Gen-Probe stockholders is set for July 31, 2012, to vote on the transaction.
Based in Bedford, MA, Hologic announced the all-cash acquisition of Gen-Probe April 30, 2012. Hologic agreed to buy all outstanding shares of San Diego–based Gen-Probe for $82.75 per share. Industry analysts say the merger creates a dominant player in the field of women’s healthcare. It blends Hologic’s diagnostic, imaging, and surgical business “with what Gen-Probe brings to the table in terms of their STD testing,” says Jon Vance, managing director, MedDX Capital Advisors of La Jolla, CA. “It really is a powerful combination.”