Andover to acquire Ortho-Medical.
Andover Medical, a North Andover, MA-based provider of orthopedic and other durable medical equipment (DME), has agreed to purchase fellow DME provider Ortho-Medical Products for $500,000, along with an exchange of $2 million in restricted shares of Andover common stock.
Along with orthopedic DME, Ortho-Medical also is a provider of respiratory and orthotic equipment and prosthetic devices. The company currently serves New York, New Jersey and Connecticut and contracts with 50 insurance companies.
"This merger is an important step in realizing our goal of consolidating a portion of this highly fragmented industry as we execute our ongoing plan to grow our business," said Edwin Reilly, CEO of Andover. "This transaction will improve Andover Medical's brand awareness and solidify our distribution and re-selling network."
This is Andover's first acquisition as a public company. As of press time, the acquisition was expected to be completed sometime in April. Reilly also noted that Andover has "letters of intent" to acquire two other DME companies (he did not specify their names).
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|Title Annotation:||NEWS FRONT; Andover Medical Inc.; Ortho-Medical Products Inc.|
|Publication:||Orthopedic Design & Technology|
|Article Type:||Brief article|
|Date:||May 1, 2007|
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