Encore Orthopedics, Inc. Announces Major Capital Infusion; Will Become Public by Early Next Year.
HCAC is a publicly traded company that completed its initial public offering earlier this year, raising money for the specific purpose of investing in a healthcare company. As a result of this transaction, Encore will become a wholly owned subsidiary of HCAC and Encore's current shareholders will become the controlling shareholders of HCAC. HCAC anticipates applying to list its stock on the NASDAQ National Market System upon the closing of the transaction.
Encore will use this capital infusion to continue to expand its core business, orthopedic implants, and to allow it to focus on the acquisition of other companies or products in the orthopedic market. Nick Cindrich, CEO of Encore, stated, "This is an exciting development for Encore. We can use this significant cash infusion to continue our strong record of growth. Additionally, we look forward to being part of a public company and having all of the advantages that entails." Recently Encore was named by the Austin Business Journal as one of the fastest growing companies in Austin, ranking sixth on its listing of the Top 50 Fastest Growing Private Companies in Austin and 398th in the Inc. 500 listing of fastest growing private companies in the United States.
Jay Haft, chairman of HCAC, noted, "We looked at many companies before we settled on Encore. We saw its superior management team, its broad product line, and its past growth as key indicators for what we perceive to be excellent opportunities for future growth. We are very excited about this transaction."
The transaction is still subject to regulatory approval and approval by both companies' shareholders. It is anticipated that shareholders will be asked to approve this transaction early in 1997.
CONTACT: Encore Orthopedics
Harry L. Zimmerman, 512/795-8696
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|Date:||Oct 17, 1996|
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