OrthoPediatrics, Indiana, acquired Boston Orthotics & Prosthetics, Massachusetts, with an upfront cash payment of $22 million. After closing, OrthoPediatrics cash and restricted cash balance is approximately $60 million. Additionally, in advance of the acquisition, OrthoPediatrics closed a debt financing with MidCap Financial to provide up to $80 million of capital, through the combination of a term loan and revolving loan, replacing its prior unused $50 million line of credit.
Boston O&P’s products will expand OrthoPediatrics’ existing Specialty Bracing division.
“We are thrilled to announce the acquisition of Boston O&P, an organization that shares our mission to help children whose lives have been impacted by orthopedic conditions. We are now the first company to have a role supporting the entire continuum of care for pediatric orthopedic patients. This opportunity significantly expands our newly launched OrthoPediatrics Specialty Bracing division and is reflective of the opportunity we saw with pediatric surgical implants at the company’s founding,” said OrthoPediatrics CEO Dave Bailey.
Partnering with world-class medical facilities including Boston Children’s Hospital, Children’s Hospital of Philadelphia, Nationwide Children’s Hospital, and Phoenix Children’s Hospital, Boston O&P maintains 26 patient care clinics across the United States. Boston O&P’s recent annual historical revenue is approximately $25 million.
“Combined, our businesses have helped over one million children globally and we look forward to helping the next million together by expanding the number of clinics and aggressively launching new products that meet unmet needs for children and their caregivers,” Bailey said. “Over time, we aspire to support all 300 high volume children’s hospitals in the US.”
