Iceland-based Ossur hf., a global orthopaedics company, has acquired Innovation Sports, Inc., a U.S.-based ligament brace maker for $ 38.4 million.
The acquisition of Innovation Sports comes on the heels of Ossur's July 2005 acquisition of Royce Medical in the U.S., and the December 2005 acquisition of IMP Holdings in the U.K. With these acquisitions, and its 2003 acquisition of Generation II, Ossur aspires to be one of the world's largest, and diversified companies in the braces and support market.
Ossur president & CEO Jon Sigurdsson said Innovation Sports would give Ossur a leading edge in ligament braces, the largest segment of the braces and support market, and accelerate Ossur's strategic initiative to advance in the orthopaedics market with improved operating efficiencies and other synergies.
Innovation Sports, based in Foothill Ranch, California, established in 1983, has 150 employees with the U.S. (50% sales), Canada (10%) and central Europe (40%) as its main markets. The company specializes in the manufacture of knee braces for the treatment of ligament injuries and rehabilitative uses, as well as protective braces for athletes. It also has product lines that address pain management and wrist braces, which are new to the Ossur product portfolio.
For the fiscal year ending 31 December 2005, Innovation Sports is expecting sales of $19 million and a normalized EBITDA margin of 19%. In connection with the acquisition, Ossur expects to incur approximately $3 million of integration and restructuring expenses in 2006 fully expensed in Q1, but projects that these efforts will yield approximately $4 million of annual cost savings beginning in 2007.
In connection with the acquisition, additional funding of $40 million has been provided by Kaupting bank hf.
Ossur is a trusted and global leader in the development, manufacturing, distribution, sales and marketing of braces and support products and prosthetics. Headquartered in Reykjavik, Iceland, the company has operations and a distribution network throughout the world.