In a recent transaction, Carlyle Group Inc. (NASDAQ:CG) has sold a substantial portion of its holdings in QuidelOrtho Corp (NASDAQ:QDEL), divesting 8,260,183 shares for a total of approximately $291.7 million. The shares were sold at an average price of $35.314 each. This sale leaves Carlyle Group with no remaining shares in QuidelOrtho.
The transaction was carried out by several entities within Carlyle's structure, including Carlyle Holdings II GP L.L.C., Carlyle Holdings II L.L.C., and CG Subsidiary Holdings L.L.C., among others. These entities are interconnected through a series of partnerships and limited liability companies, as detailed in the filing's footnotes. The Carlyle Group, a prominent private equity firm, is listed on Nasdaq and plays a significant role in managing these entities.
The sale marks a significant reduction in Carlyle's involvement with QuidelOrtho, a company specializing in in vitro and in vivo diagnostic substances. The shares were previously held by Carlyle Partners VI Cayman Holdings, L.P., a limited partnership within the Carlyle Group's network.
In other recent news, QuidelOrtho Corporation reported its third-quarter earnings for 2024, revealing a revenue of $727 million and adjusted EBITDA of $171 million. The company's adjusted diluted earnings per share (EPS) was reported at $0.85. Despite experiencing a decline in respiratory revenue and maintaining a cautious outlook on China, QuidelOrtho remains on track to meet its full-year guidance.
In a recent leadership reshuffle, CFO Joseph M. Busky's responsibilities were expanded to include oversight of the Information Technology function. This expansion of duties was accompanied by a significant increase in Busky's annual base salary from $586,328 to $680,000.
The company also announced leadership changes, with Jonathan Siegrist stepping in as the new CTO and Lee Bowman as CHRO. As part of its strategy, QuidelOrtho is working towards a $100 million cost savings target by mid-2025. For the full year of 2024, the company expects a revenue between $2.75 billion and $2.80 billion, and an adjusted diluted EPS between $1.69 and $1.91. These are among the recent developments within the company.
InvestingPro Insights
The recent sale of QuidelOrtho Corp (NASDAQ:QDEL) shares by Carlyle Group comes at a time when the diagnostic company is facing some financial challenges. According to InvestingPro data, QuidelOrtho's revenue growth has slowed, with a 9.74% decline in the last twelve months as of Q3 2024. This slowdown may have influenced Carlyle's decision to exit its position.
Despite these challenges, InvestingPro Tips suggest that QuidelOrtho's net income is expected to grow this year, and analysts predict the company will return to profitability. This potential turnaround could make the stock attractive to new investors at its current valuation, with a price-to-book ratio of 0.8 as of the last twelve months ending Q3 2024.
However, potential investors should note that QuidelOrtho operates with a significant debt burden and does not pay a dividend to shareholders. The company's stock has also experienced a substantial decline, with a year-to-date price total return of -49.15% as of the latest data.
For those considering an investment in QuidelOrtho, it's worth noting that InvestingPro offers 6 additional tips that could provide further insight into the company's financial health and prospects. These additional tips, along with real-time metrics, can be accessed through the InvestingPro product, offering a more comprehensive view of QuidelOrtho's investment potential.
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