DJ ORTHOPEDICS ACQUIRES ENCORE'S OSG BUSINESS

Dj Orthopedics, a medical device company specializing in rehabilitation and regeneration products for the non-operative orthopedic and spine markets, has purchased the assets of the orthopedics soft goods (OSG) business of Encore Medical for approximately $10 million in cash.

Dj Orthopedics acquired certain tangible and intangible assets of the OSG business, including inventory, certain fixed assets and intellectual property, and assumed certain contractual obligations. The OSG product lines, based on the acute care hospital market, consist of orthopedic soft goods, patient safety products and pressure care products. The company estimates the acquired business will add incremental annualized net revenue of approximately $10 million to $12 million, with an earnings per share contribution of five to six cents, subject to finalizing the related purchase accounting impact.

"The acquisition adds important mass to our soft goods franchise, with significant manufacturing and distribution synergies," said dj Orthopedics President and CEO Les Cross. "The OSG business also brings us complementary products, such as patient safety restraints, that we do not presently have in our ProCare portfolio."