Wright Medical Group, Inc. has acquired Solana Surgical, LLC and entered into a definitive agreement to acquire OrthoPro, LLC (OrthoPro), both of which it describes as privately held, high growth extremity companies.
Extremity specialist Wright Medical says these two transactions add complementary product portfolios that it expects will further accelerate growth opportunities in Wright’s global Extremities business. Wright has completed the acquisition of 100% of Solana’s outstanding equity on a fully diluted basis for total consideration of $90 million, consisting of approximately $47.6 million in cash and approximately $42.4 million of Wright common stock.
The OrthoPro deal on the other hand is expected to close in February 2014. Under the terms of that agreement, Wright will acquire 100% of OrthoPro’s outstanding equity on a fully diluted basis at a total price of up to $36 million in cash with some $3.5 million contingent on achievement of certain revenue-based milestones.
So why the acquisitions? Solana Surgical is a global extremity orthopedic company that develops products for use in the foot, ankle and hand markets. As such the fit with Wright’s offerings is a good one, and their ability to develop nitini based system will no doubt add something to Wright’s own offerings. We last covered their FuseFORCE™ SuperElastic Fixation System back in September 2013, here.
OrthoPro too dedicates itself to foot and ankle product development. Since 2003, OrthoPro’s range includes the Phalinx Cannulated Hammertoe Fixation System, Total Compression Plate System, and Hemiarthroplasty Implant.
for Wright Medical
Robert Palmisano, president and chief executive officer of Wright, commented, “The acquisitions of Solana and OrthoPro are excellent fits for our Extremities business, enabling us to add a base of fast-growing extremity revenue that we can effectively grow on a go-forward basis. Both of these transactions meet our criteria of being accretive to revenue growth and adjusted EBITDA. In addition, products from both companies will complement our existing foot and ankle portfolio and include several specialized products that expand our extremities product offering. Both companies have a reputation for leading innovation, and we anticipate that their products will help expand Wright’s position as the definitive technology leader in the foot and ankle market.”
Alan Taylor, chief executive officer of Solana, added, “We are delighted to partner with a company that shares Solana’s commitment to building a high-growth Extremities business. We believe that Wright Medical, with its global leadership position in the foot and ankle market and expertise in medical education and product development, is the ideal partner to accelerate our growth and realize the full potential of Solana’s products around the world. We look forward to an exciting future and the continued success of our business as part of Wright Medical.”
Dustin Leavitt, chief executive officer of OrthoPro, commented, “This combination will provide the opportunity for further expansion of OrthoPro’s innovative products to support market growth and procedure penetration worldwide. We look forward to advancing our foot and ankle business with the recognized leader in the foot and ankle market.”
Source: Wright Medical, Inc., Business Wire