Chinese-European Fund XIO Fund Set to Sell Israel-based Lumenis for $950m

Lumenis manufactures laser devices for the aesthetics and medical industry, including laser hair removal devices, devices for ear, nose and throat operations, and devices for removing eye glaucomas

Treatment with a Lumenis device.
Rami Shllush

A major exit is in the works: Yokneam-based Lumenis is slated to be sold for $950 million, it emerged on Wednesday, after CVC brought Chinese fund FountainVest Partners into the deal in order to gain full control over the company.

The seller, the Chinese-European fund XIO, is slated to receive a return on its investment of 86% in three years. It put Lumenis up for sale a year ago with a price tag of more than $1 billion.

The final price has not been agreed on, but sector sources say it is likely to be around $950 million.

Lumenis manufactures laser devices for the aesthetics and medical industry, including laser hair removal devices, devices for ear, nose and throat operations, and devices for removing eye glaucomas.

XIO acquired the company for $510 million three years ago.

Lumenis was founded in 1991 under the name ESC, and started trading on the NASDAQ in 1996. By 1997 it was trading at a market capitalization of $1 billion, but just under a decade later, in 2006, it was withdrawn from trading with a market cap of a mere $47 million amid accusations of cooking the books and recording transactions inappropriately.

Udi Angel and Idan Ofer later acquired 80% of the company’s shares for $120 million, and in 2014 launched the company on the NASDAQ again at a $470 million capitalization. A year later, XIO bought out the company and took it private at a capitalization of $510 million.