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Date Announced: 05 Jul 2011
PhotoMedex shareholders to own approximately 25% of the company on a fully converted basis.
MONTGOMERYVILLE, Pa.--(BUSINESS WIRE)-- PhotoMedex, Inc. (Nasdaq:PHMD - News), (“PhotoMedex”) a leader in the development of proprietary excimer laser, LED light systems and skin care products for dermatological applications, today announced the signing of an Agreement and Plan of Merger (the “Agreement”) among PhotoMedex, Radiancy, Inc., a privately held Delaware corporation (“Radiancy”) and PHMD Merger Sub, Inc. (“Merger Sub”), a wholly owned subsidiary of PhotoMedex. Pursuant to the Agreement, Merger Sub will merge with and into Radiancy, and Radiancy will become a wholly owned subsidiary of PhotoMedex. Radiancy is a rapidly growing global direct-to-consumer and dermatological products company based in Orangeburg, N.Y. This transaction combines the strength of PhotoMedex in the professional dermatology and plastic surgery market with the global reach of Radiancy in the consumer market, and represents considerable opportunity for synergies and sales growth of each company’s product portfolio.
Founded in 1998, Radiancy is a leading developer and manufacturer of home-use and professional aesthetic and dermatological devices. Radiancy sells a range of home use-devices under its proprietary brand, no!no!™, for various indications including hair removal, acne reduction, skin rejuvenation and face lifting. Radiancy also offers a professional product line which addresses acne clearance, skin tightening, psoriasis care and hair removal sold to physician clinics and spas. Radiancy posted total revenues of approximately $96 million and adjusted net income of approximately $25 million for the 12 months ended March 31, 2011. Radiancy’s family of products are based on its proprietary, patent-protected LHE™ (Light Heat Energy) and Thermicon™ technologies, and are sold under the no!no!™ brand for consumers and the Radiancy™ brand for professionals. The no!no! brand is available at high-end retailers such as Neiman Marcus, Henri Bendel, Planet Beauty, Selfridges, Harrods, Falavella, Fravega, Garbarino, Boots, Myers and others; home shopping channels such as HSN and QVC, online retailers such as Amazon, Dermadoctor.com, and Drugstore.com, and via direct-to-consumer advertisement that includes infomercials, commercials, catalog and internet-based marketing campaigns. Radiancy utilizes direct sales channels in the U.S., Canada, the U.K., France, Argentina, Spain, Portugal, and Israel and leading distributors in Japan, Australia, New Zealand, Singapore, Russia, South Africa, various South American countries and the Middle East.
Commenting on the agreement, Dennis McGrath, PhotoMedex president and chief executive officer, said, “This is a transformative transaction for PhotoMedex, and the combination of these two companies holds potential for revenue and earnings growth that neither one of us would be able to achieve alone. This business combination is a wonderful sales channel match, as Radiancy’s professional products can benefit from PhotoMedex’s direct sales force strength in the medical dermatology marketplace, honed by our many years of XTRAC® sales for the treatment of psoriasis and our NEOVA™ skin rejuvenation products. At the same time, our consumer products will be well-served by Radiancy’s highly successful direct-to-consumer sales engine and skillfully creative marketing programs. Yet beyond the business synergies, we believe this is an excellent fit of corporate cultures, with a shared commitment to innovation, product quality and meeting the evolving needs of customers.”
Dr. Dolev Rafaeli, president and chief executive officer of Radiancy, said, “We are delighted to be joining forces with PhotoMedex to the future benefit of both companies. We believe that Radiancy is the only professional aesthetic dermatology company that has succeeded in taking these professional technologies geared toward physicians and medical spas and adapting them for the home-use market. PhotoMedex has a number of products and proprietary technologies that may be repackaged for the consumer marketplace. Additionally, the PhotoMedex domestic U.S. sales infrastructure can give our professional-use products the attention they deserve in multiple sales channels. The timing of this transaction is ideal as Radiancy has recently expanded its reach into the U.S. and European markets, and plans to introduce a number of new products, particularly in Europe where PhotoMedex has established subsidiary operations lending itself to accelerating its market penetration.”
Source: PhotoMedex
E-mail: info@photomedex.com
Web Site: www.photomedex.com
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