Baring Asia to buy Lumenis from XIO for $1b

The deal comes three months after XIO – a cross-border private equity firm established by several Asia-based investment professionals that has faced scrutiny over the makeup of its LP base – exited market research business J.D. Power to Thoma Bravo. Assuming the Lumenis transaction closes, it would leave specialty chemicals producer Compo Expert as the last remaining disclosed asset in the XIO portfolio.

Lumenis claims to be a global leader in the field of minimally invasive clinical solutions based on intense pulsed light (IPL) and radio frequency (RF) technologies. For example, its devices can perform laser surgery that removes kidney stones and tumors and corrects vision problems. Cosmetic surgery applications include skin damage treatment, hair and tattoo removal, and cellulite reduction. The company has a presence in over 100 countries and close to 1,500 employees worldwide.

"Lumenis has built a market-leading position by creating some of the most innovative technologies in the industry. It is a clear leader worldwide, especially in Asia which recently emerged as the largest market for medical and aesthetics treatments. We look forward to working with the CEO and management team to support their global growth aspirations," Yan Jiao, a managing director at Baring, said in a statement.

XIO acquired the company in 2015 through a privatization worth $510 million, facilitating an exit for VC investors Viola Group and XT Hi-Tech. In 2014, Lumenis generated $289.7 million in revenue – of which $100.5 million came from Asia Pacific – and $19.9 million in net income. Reports of a sale process came as early as December 2017. Last year, CVC Capital Partners was said to be close to buying the business.

XIO was established in 2014 under the leadership of Joseph Pacini, formerly head of the Asia Pacific alternative investments strategy group at BlackRock, and Athene Li, previously an executive director at Olympus Capital. It is headquartered in London with satellite operations in Germany, Switzerland, Israel, Hong Kong and mainland China.

The firm claims to have $5 billion in committed capital for investments in North America and Europe-based assets that have growth potential in emerging markets such as Asia. Numerous reports over the past few years have indicated that XIO has substantial Chinese backing, although Reuters said in May that only a small portion of the capital now comes from Chinese sources.

In 2016, XIO agreed another acquisition of an Israel-based business, investment firm Meitav Dash. However, the ILS1.48 billion ($387 million) deal fell through, with the seller claiming that XIO had changed the terms of the deal.

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• Topics
• MENA
• Buyouts
• Healthcare
• Trade sale
• Asia
• Baring Private Equity Asia