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Misonix buys Virginia firm in $97 million deal

Misonix is based in Farmingdale.

Misonix is based in Farmingdale. Credit: Google Maps/Trotman-Wilkins, David

Misonix Inc., a Farmingdale maker of medical ultrasonic devices, has agreed to acquire a Virginia-based maker of wound treatments that use human cells in a $97 million deal.

The all-stock transaction for privately held Solsys Medical LLC was announced after the stock market's close on Thursday. 

Misonix, with 118 employees as of June 30, will remain in Farmingdale, a company spokesman said.

Shares of Misonix   climbed 3.9 percent to close at $17.30 on Friday.   Twelve months ago the stock was trading at $9.80.

Terms of the deal call for shareholders of Misonix to own 64 percent of the combined company, with the remainder going to the owners of Solsys, which is based in Newport News. Misonix also will assume Solsys' outstanding secured debt of about $20 million when the deal closes.

"Solsys and its leading wound treatment application, TheraSkin, is highly complementary to Misonix’s existing wound debridement solution, SonicOne," Misonix president and chief executive Stavros Vizirgianakis said in a statement.

The boards of both companies have endorsed the transaction, which is subject to the approval of Misonix and Solsys shareholders.

Vizirgianakis will become CEO of the combined company, whose five-member board will include three current Misonix directors and two nominated by Solsys.

J.P. Morgan Securities acted as a financial adviser to Misonix, while Solsys used Canaccord Genuity LLC.

Misonix makes ultrasonic devices used in spine and orthopedic surgery and wound debridement, in which damaged or infected tissue is removed.

TheraSkin, which is made of preserved skin tissue from cadavers, is used to treat difficult-to-heal wounds, a spokesman said.

Solsys, with about 100 employees, is expected to register sales of about $32 million in 2019; in fiscal 2020, the combined company is forecast to produce sales of more than $80 million.

The deal "enhances Misonix’s ability to address the domestic wound biologics market, which is valued at approximately $700 million annually, and is projected to grow at a compound annual growth rate of 8 percent," Misonix chief financial officer Joe Dwyer said.

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