“Today’s announcement of the divestiture and sale of our Core business segment to Symmetry is a major strategic transaction for Bovie Medical,” said Charlie Goodwin, CEO of the company. “The Core electrosurgical and cauteries business is the foundation of Bovie Medical and we are extremely proud of the success we have had with this business which dates back to the company’s inception many years ago. At the same time, we believe the customers and employees of Bovie Medical’s Core business are best-positioned going forward with the focus and investment they will receive under Symmetry’s ownership.”
Goodwin continued: “This is a milestone moment for the company, one that creates significant value for our shareholders by significantly enhancing our balance sheet with the addition of more than $70 million in estimated net cash proceeds after taxes and transaction related expenses and allowing us to further focus the organization on our strategic objective of commercializing our J-Plasma/Renuvion technology in the cosmetic surgery market.”
The company and Symmetry will also enter into a transition services agreement, a patent licensing agreement, a disposables supply agreement and a generator manufacturing and supply agreement, the latter of which will establish the company as an OEM-provider of generators to Symmetry for a period of at least 10 years.
Until the transaction closes, the company will continue to manage the Core business, providing full product availability and support to customers. In connection with the transaction, the company will prepare a proxy statement to be filed with the U.S. Securities and Exchange Commission. A definitive proxy statement will be mailed to shareholders of the company. The transaction is expected to close in the third quarter of 2018.
Following the closing of the transaction, the company update its financial guidance for fiscal year 2018.
Piper Jaffray & Co. is serving as financial advisor to the company while Ruskin Moscou Faltischek, P.C. is serving as legal advisor.