Bovie Medical (BVX) Stock: Climbing On Sale Of Core Business

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Bovie Medical Corporation BVX Stock NewsBovie Medical Corporation (NYSEAMERICAN: BVX) is climbing early on in the market this morning, and for good reason. The company announced that it would sell its Core business segment, leading to excitement among investors who are sending the stock screaming for the top. Today, we’ll talk about:

  • The sale;
  • what we’re seeing from BVX as a result; and
  • what we’ll be watching for with regard to the stock ahead.

BVX Announces Sale Of Its Core Business

As mentioned above, Biovie Medical is having an incredibly strong start to the trading session in the pre-market hours this morning, after announcing a sale. In a press release issued early this morning, the company announced that it has entered into a definitive agreement with Specialty Surgical Instruments under whch it will divest and sell the Core business segment and the Bovie® to Symmetry. The gross proceeds of the sale will be $97 million in cash.

In the release, BVX said that the transaction has been approved by the company’s board of directors, but is subject to customary closing conditions, including approval by its shareholders and the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

In the release, the company said that it would be retaining its Advanced Energy and OEM businesses as well as its facilities in Clearwater, FL and Sofia Bulgaria. The company will also retain certain intellectual property relating to specialty generators. Also, as part of the transactions, J. Robert Saron, President and Director at BVX will be resigning from his position with the company and Board of Directors in order to join Symmetry following the closing of the transaction. In a statement, Charlie Goodwin, CEO at BVX, had the following to offer:




Today’s announcement of the divestiture and sale of our Core business segment to Symmetry is a major strategic transaction for Bovie Medical… 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.

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.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In the case of Bovie Medical, the news proved to be overwhelmingly positive. With the divestiture and sale of the Core business segment as well as the Bovie brand, the company will generate a large amount of funding that will support future growth. So, it’s no surprise to see that excited investors are sending the stock on a run for the top. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:32), BVX is trading at $5.40 per share after a gain of $0.41 per share or 8.22% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on BVX. In particular, we’re interested in following the story surrounding the company’s continued work with regard to this transaction. Following the closing of the transaction, we’re exciting to see how the company puts the funding to work to set the foundation for future growth. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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