Bovie Medical to deal core electro-cautery biz to Symmetry Surgical for $97m

Bovie Medical (NYSE:BVX) shares rode a roller coaster today on the news that it’s dealing its core electro-cautery business to Symmetry Surgical for $97 million and is on track to beat estimates with its second-quarter sales. Clearwater, Fla.-based Bovie, which is making a pivot toward the cosmetic surgery market, said the all-cash deal for the electrosurgical and cauteries business includes its namesake brand. It also involves transition services, patent licensing, disposables supply and generator manufacturing agreements; Bovie said the latter term sets it up as an OEM supplier to Symmetry “at least” a decade. That leaves the advanced energy business and a pair of sites in Clearwater and Sofia, Bulgaria under the company’s belt, as it looks to commercialize its J-Plasma and Renuvion offerings. Bovie also said that president Robert Saron is slated to step down to join Symmetry after the deal closes, expected during the third quarter. “Today’s announcement of the divestiture and sale of our core business segment to Symmetry is a major strategic transaction for Bovie Medical,” CEO Charlie Goodwin said in prepared remarks. “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 b...
Source: Mass Device - Category: Medical Devices Authors: Tags: MassDevice Earnings Roundup Mergers & Acquisitions Surgical Wall Street Beat Source Type: news