OrthoPediatrics, Warsaw, Indiana, announced the acquisition of MD Orthopaedics, Wayland, Iowa, including its bracing product lines and AFO system for the treatment of clubfoot. The transaction is valued up to $19.6 million. Under the terms of the agreement, OrthoPediatrics will acquire MD Orthopaedics for an upfront cash payment of $8.2 million and $8.9 million in company stock, with an additional $2.5 million in restricted stock that will vest after three years.
MD Orthopaedics will serve as a specialty bracing platform company within the OrthoPediatrics trauma and deformity business. OrthoPediatrics said it will maintain its focus on the treatment of clubfoot, and it plans to leverage and grow the MD Orthopaedics organization to develop several products that address the unmet needs for specialty bracing within the pediatric orthopedic market.
“We believe MD Orthopaedics will be a springboard for our expansion into pediatric orthopedic nonsurgical treatments for kids and further supports our mission of helping children living with orthopedic conditions,” said David Bailey, OrthoPediatrics CEO. “The addition of nonoperative specialty bracing systems advances our growth strategy of providing a broad product portfolio uniquely designed to treat children while surrounding pediatric orthopedic surgeons with the most comprehensive product offering in the market.”
MD Orthopaedics’ technology is supported by intellectual property protection, including 14 issued patents and seven patents being processed. It operates and sells specialty bracing systems in 90 countries. OrthoPediatrics distributes its products in the 46 countries.
