Story updated at 5:45 p.m. June 12:
Goleta-based breast implant maker Sientra entered into a $20 million cash agreement to purchase Santa Clara-based Miramar Labs on June 12, according to a news release.
Sientra also agreed to potential contingent payments of up to $14 million to Miramar’s debt and equity holders if certain milestones are achieved.
“The acquisition of Miramar will be a significant step toward our stated intent of building Sientra into a diversified global aesthetic company,” Sientra Chairman and CEO Jeffrey Nugent said in the release. “We remain highly confident in the core Sientra business as we prepare for relaunch and expansion moving into 2018 and continue to expect approval of the PMA Supplement for our new U.S. based manufacturing site by the end of 2017.”
The transaction is one of several the company has made to expand its product portfolio. Sientra will now have access to an FDA approved underarm sweat, odor and hair reducer, which brought in $20 million in revenues in 2016, the news release stated.
Sientra announced in November that it had acquired a line of tissue expanders from Specialty Surgical Products of Montana for an undisclosed sum. In March of 2016, the company acquired the rights to silicone gel scar management product Biocorneum for $7 million, and it secured a new manufacturer for its products in August.
Since then, sales have increased and losses have begun to narrow. The acquisition of Miramar is expected to generate meaningful revenues for the company by 2018, Nugent said, and will help Sientra achieve positive cash flow faster than it would as a standalone business.
Operating under Sientra will help Miramar scale up its sales and marketing for the product, said President and CEO Mike Kleine, adding that “this combination will bring the additional capital investment needed in sales and marketing to allow scaling of miraDry’s installed base by leveraging Sientra’s expanded customer base and their sales team.”
Sientra also brought on Keith Sullivan, formerly chief commercial officer and president of North American operations at Zeltiq, as a strategic adviser.
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