April 24, 2012 by MassDevice staff
Orthofix sells its sports medicine subsidiary Breg Inc. to private equity subsidiary Breg Acquisition Corp. for $157.5 million in cash.
Orthofix (NSDQ:OFIX) agreed to sell all outstanding shares of its sports medicine subsidiary Breg Inc. to Breg Acquisition Corp., a newly formed subsidiary of private equity firm Water Street Healthcare Partners, for $157.5 million in cash.
Orthofix expects to net about $140 million from the transaction, which it will use to prepay certain debt agreements, according to a press release.
“With the divestiture of the sports medicine business, we are now able to devote Orthofix’s full resources and attention to strengthening our value proposition around our repair hardware and regenerative biologics and stimulation solutions,” president & CEO Robert Vaters said in prepared remarks.
“We believe this deleveraging event and resulting borrowing capacity will allow us to expand and enhance both our spine and orthopedic business units in a way that accelerates our ability to create shareholder value,” he added.
READ MORE HERE – https://www.massdevice.com/news/orthofix-sells-breg-sports-medicine-unit-pe-firm-158m-cash