Cynosure, Inc., a leader in laser- and light-based aesthetic treatments for non-invasive and minimally invasive applications, today announced that it has acquired the assets of Ellman International, Inc. for approximately $13.2 million in cash. In addition, Cynosure assumed certain contractual and current liabilities associated with normal working capital. Based in Hicksville, NY, Ellman develops, manufactures and markets advanced radiofrequency (RF) technology for precision surgical and aesthetic procedures and offers a line of aesthetic lasers. Ellman’s current annualised revenue run-rate is approximately $25 million. The transaction is expected to be accretive to Cynosure’s earnings per share by the first quarter of 2015.
‘This transaction complements our brand portfolio, expands our market opportunities and enhances our recurring revenue stream,’ said Cynosure Chairman and Chief Executive Officer Michael Davin. ‘Ellman combines a 55-year history of innovation with an outstanding reputation for developing high-quality products that serve the needs of a global customer base. Thousands of physicians, cosmetic surgeons and medical aestheticians rely on Ellman technology. We believe these assets are an excellent strategic fit for Cynosure. Ellman’s RF product line broadens our technology platform, while its aesthetic lasers allow us to offer a value solution at a different price point than our current offerings. We are pleased to welcome the talented Ellman team to the Cynosure family.’
Ellman’s product line encompasses multiple RF generators and single-use electrodes for aesthetic and multi-specialty surgical indications such as facial plastic and general surgery, gynecology, ear, nose and throat procedures, ophthalmology, oral and maxillofacial surgery, podiatry and proctology. Ellman’s proprietary high frequency, low-temperature RF technology is optimised for achieving surgical precision and controlled hemostasis.
‘The efficacy of products such as Ellman’s versatile Surgitron® radiowave platform technology is supported by clinical validation in more than 300 surgical publications,’ Davin said. ‘What differentiates Ellman’s platform technology is its ability to consistently achieve favorable clinical outcomes with minimal tissue damage, rapid recovery and less scarring.’
In addition to Surgitron, the Ellman product line includes the RF-based Pelleve® Wrinkle Reduction System. Pelleve is a skin tightening system for non-ablative skin rejuvenation that can be performed in an hour or less, is pain free and is associated with no downtime for the patient. In February 2014, Ellman announced that its PelleFirm™ RF Body Treatment System had received US Food and Drug Administration clearance for tissue heating and the temporary reduction in the appearance of cellulite. The device also is CE Marked for body skin tightening and cellulite reduction.
‘The cost-effective Pelleve and PelleFirm systems provide an attractive entry point for medispas and non-core physicians seeking to build their aesthetic practices,’ Davin said. ‘For patients, these non-invasive treatments deliver quickly visible results with no pain or downtime, thereby allowing for an immediate return to normal activity.’
Ellman has approximately 100 employees, including an 18-person direct sales force in North America, a research and development team and distribution managers who oversee more than 65 international distributors. Cynosure expects to retain substantially all of the employees at Ellman, which becomes a division of the Company.