OrthoPediatrics Corp. has acquired Boston Orthotics & Prosthetics and closed a debt financing with MidCap Financial.
Massachusetts-based Boston O&P has been dedicated to pediatric orthotics and non-surgical scoliosis treatment options for over 50 years. It currently maintains 26 patient care clinics through its partnerships with medical facilities across the U.S.
Boston O&P’s “recent annual historical revenue is approximately $25 million.” OrthoPediatrics acquired the company for an upfront cash payment of $22 million. According to the company, “post-closing, OrthoPediatrics cash and restricted cash balance is approximately $60 million.”
Prior to the acquisition, OrthoPediatrics entered into a new credit agreement with MidCap Financial providing up to $80 million in capital. This includes a term loan of up to $30 million of capital and a revolving loan providing up to $50 million. OrthoPediatrics drew $10 million from the term loan prior to the acquisition. This new credit agreement replaces a previously unused $50 million line of credit from Squadron Capital.
The acquisition will significantly expand OrthoPediatrics’ specialty bracing division. This includes the addition of the Boston Brace, a custom-made scoliosis back brace, and the Boston Band. The Boston Band, per the Boston O&P website, is a “lightweight foam and plastic cranial helmet that treats a number of types of cranial asymmetry.”
OrthoPediatrics CEO Dave Bailey commented in part, “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.”
Dave Bailey continued, “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.”
