Encore to acquire orthopedic company
Austin Business Journal
Austin's Encore Medical Corp. [Nasdaq: ENMC] is acquiring an orthopedic rehabilitation equipment company in Hixson, Tenn.
Encore has signed an agreement to acquire Chattanooga Group Inc., which designs, manufactures and distributes rehabilitation products, a Encore news release states.
Financial details weren't disclosed.
Encore designs, manufactures, markets and distributes orthopedic products, such as joint implants for the hip, knee and shoulder. Revenue for fiscal 2000, which ended Dec. 31, was $30.1 million. So far in fiscal 2001, Encore has reported revenue of $35 million.
Chattanooga Group had revenue of more than $48 million in its most recent fiscal year, which ended in June, the release states.
"With this acquisition, we will broaden our product offerings to include those products that provide for the full continuum of care for patients who utilize the services of orthopedic professionals," Encore CEO Kenneth Davidson says. "We will be able to service the orthopedic surgeons, sports medicine professionals and physical therapists."
Davidson says Chattanooga management and employees are part of the transaction. Chattanooga was founded in 1947 by Lee Jensen and Jack Walker. The number of employees at Chattanooga wasn't disclosed.
This is Encore's second acquisition this year.
In July, Encore acquired the orthopedic soft goods, patient safety devices and pressure care product lines from Kimberly-Clark Corp. Encore valued the transaction at $9 million.
In June, Encore secured $13 million in equity funding through the sale of preferred stock. The company has said it would use the funds to finance acquisitions in the orthopedic industry.
Encore expects to close on the Chattanooga Group deal in 2002.
For more information about Encore's funding, visit (http://austin.bcentral.com/austin/stories/2001/06/11/daily41.html).
For more information about Encore's acquisition in July, visit (http://austin.bcentral.com/austin/stories/2001/07/02/daily11.html).
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