10.20.15
Clearwater, Fla.-based Bovie Medical Corporation, maker of medical devices and supplies, has acquired its Bulgarian research and development (R&D) and manufacturing contractor, Bovie Bulgaria, for approximately €500,000 ($570,000 U.S.) in cash, payable over a five-year period. The initial cash payment of €375,000 ($427,000 U.S.) was made at closing, and the remaining cash payment of approximately €125,000 ($143,000 U.S.) is due on Oct. 20, 2020.
Bovie Bulgaria operates a 16,000 square foot ISO13485 certified and U.S. Food and Drug Administration registered manufacturing facility located in the capital city of Sofia, which houses manufacturing, development and assembly operations. The transaction will ensure that Bovie has full control over this important part of its product development and supply chain, particularly with respect to R&D for advanced surgical energy technology including key components of its J-Plasma product line. Additionally, the transaction will drive operating efficiencies that are expected to reduce Company operating expenses in 2016 and 2017 by an aggregate net amount of approximately $850,000.
“We are pleased to have completed a transaction that brings in-house the technical know-how that Bovie Bulgaria has accumulated over the last 16 years in working with Bovie Medical and enables us to form a lasting partnership with its Managing Director, Nikolay Shilev,” said Robert L. Gershon, CEO of Bovie. “Nikolay has entered into a five-year employment contract with Bovie Bulgaria and will receive an inducement grant of 225,922 shares of Bovie Medical restricted stock priced at $2.00 per share that will vest ratably over a five-year period. The Bulgarian manufacturing facility will be fully dedicated to our production needs and will be of immediate financial benefit to the Company. Additionally, it positions us to capture more European business for both J-Plasma® and our core product portfolio.”
Bovie Bulgaria operates a 16,000 square foot ISO13485 certified and U.S. Food and Drug Administration registered manufacturing facility located in the capital city of Sofia, which houses manufacturing, development and assembly operations. The transaction will ensure that Bovie has full control over this important part of its product development and supply chain, particularly with respect to R&D for advanced surgical energy technology including key components of its J-Plasma product line. Additionally, the transaction will drive operating efficiencies that are expected to reduce Company operating expenses in 2016 and 2017 by an aggregate net amount of approximately $850,000.
“We are pleased to have completed a transaction that brings in-house the technical know-how that Bovie Bulgaria has accumulated over the last 16 years in working with Bovie Medical and enables us to form a lasting partnership with its Managing Director, Nikolay Shilev,” said Robert L. Gershon, CEO of Bovie. “Nikolay has entered into a five-year employment contract with Bovie Bulgaria and will receive an inducement grant of 225,922 shares of Bovie Medical restricted stock priced at $2.00 per share that will vest ratably over a five-year period. The Bulgarian manufacturing facility will be fully dedicated to our production needs and will be of immediate financial benefit to the Company. Additionally, it positions us to capture more European business for both J-Plasma® and our core product portfolio.”