WARSAW, Ind., June 14, 2022 (GLOBE NEWSWIRE) — OrthoPediatrics Corp. (“OrthoPediatrics” or the “Company”) (Nasdaq: KIDS), a company focused exclusively on advancing the field of pediatric orthopedics, announced that it has entered into an agreement to acquire Pega Medical, including its Fassier Telescopic Intramedullary System -Duval™ designed for patients with osteogenesis imperfecta and other bone deformities.
David Bailey, Managing Director of OrthoPediatrics, said, “We are delighted to announce the agreement to acquire Pega Medical. Similar to OrthoPediatrics, the Pega organization has focused exclusively on the unmet needs of children whose lives have been impacted by musculoskeletal disorders and diseases. Their product offerings include new technologies to treat some of the most unique conditions in pediatric orthopedics. We are grateful for the leadership and vision of the Pega team, and founder Ariel Dujovne in particular. I look forward to building on his legacy and our common cause to help even more CHILDREN with orthopedic issues! »
TRANSACTION DETAILS AND FINANCIAL ADVICE
OrthoPediatrics will acquire Pega Medical in a transaction valued at $33 million. Under the terms of the agreement, OrthoPediatrics will acquire Pega Medical for an upfront cash payment of $31 million plus $2 million in stock – which includes certain restrictions for three years.
Prior to the acquisition, OrthoPediatrics successfully increased its line of credit with Squadron Capital from $25 million to $50 million. The Company expects to use $31 million of the newly expanded credit facility to fund the transaction.
Finally, OrthoPediatrics is increasing its full-year 2022 revenue guidance range to $125 million to $128 million, representing growth of 27% to 31%. On an organic basis, which excludes Pega Medical and MD Orthopedics, OrthoPediatrics reiterates its full-year 2022 revenue guidance range of $118 million to $121 million, representing growth of 20% to 23% .
About Pega Medical
Founded in 1994 as a bioengineering services company, Pega has evolved to focus on key innovation within the trauma and deformity patient population, including developing the Fassier-Duval telescopic MI system, an innovative implant designed to treat bone deformities in children with osteogenesis imperfecta without disrupting their normal growth. It has been a well-recognized OI treatment around the world since its launch in 2000. For more than 25 years, they have collaborated with OEMs, universities and surgeons from different parts of the world in the development, assessment and regulatory approval of innovative solutions. devices for pediatric patients. They currently sell their products in over 75 countries and are based near Montreal, Canada.
About OrthoPediatrics Corp.
Founded in 2006, OrthoPediatrics is an orthopedic company focused exclusively on advancing the field of pediatric orthopedics. As such, he has developed the most comprehensive product offering in the pediatric orthopedic market to improve the lives of children with orthopedic conditions. OrthoPediatrics currently markets 37 surgical systems that serve three of the largest categories in the pediatric orthopedic market. This product offering covers trauma and deformity, scoliosis and sports medicine/other procedures. OrthoPediatrics’ worldwide sales organization focuses exclusively on pediatric orthopedics and distributes its products in the United States and 45 countries outside of the United States. For more information, please visit www.orthopediatrics.com.
Matt Basso, CFA