Hologic Inc. said Friday it would buy the China-based medical distributor TCT International Co. Ltd. for $135 million in cash, as it seeks to expand the global presence of its women's health care franchise.
Based in Beijing, privately held TCT International already distributes products for Hologic, including the ThinPrep Pap Test and the Novasure endometrial ablation device. The company has 500 employees.
"TCT is positioned as a national distribution presence in both the OB/GYN and laboratory markets based primarily on the strength of its sales network," Rob Cascella, Hologic's president and CEO, said in a statement.
Bedford, Mass.-based Hologic said $35 million of the purchase price will be deferred for one year, and TCT International will also be eligible for a two-year contingent cash earn-out, based upon revenue growth.
Hologic expects the purchase to generate revenues of approximately $10 million in fiscal 2011 and to be accretive to earnings, absent some acquisition-related expenses.
TCT will be folded into Hologic's international operations, the company said.