Healthcare Industry News: Wright Medical Group
News Release - April 16, 2007
Wright Medical Acquires the External Fixation Product Line of R&R MedicalFoot and Ankle Extremities Franchise Strengthens with Strategic Platform Addition
ARLINGTON, Tenn.--(HSMN NewsFeed)--Wright Medical Group, Inc. (NASDAQ: WMGI ), announced today that it has acquired certain assets of R&R Medical, Inc., a Pennsylvania-based company focused on providing external fixation devices to the foot and ankle and trauma markets. The purchase consists of an initial cash payment of $8 million and potential additional cash payments based upon future financial performance of the acquired assets.
Assets acquired include the R&R external fixation product line which consists of an array of foot- and ankle-focused external fixation devices, including the Circular Freedom(TM) Frame, the Hollawell Tomahawk(TM) Mini-Fixator, the Patriot(TM) Mini-Fixator and the Stealth(TM) Fusion System. These products address those external fixation procedures most commonly performed by foot and ankle surgeons and surgical podiatrists. Wright will begin offering external fixation solutions through its U.S. sales force effective immediately with expansion into international markets occurring later in 2007.
"External fixation is a staple in the foot and ankle surgeon's toolbox, and the addition of R&R's innovative and proven product platform facilitates a swift entree for Wright into this important market segment. The R&R product line is highly complementary to our rapidly expanding line of reconstructive and biologic products for foot surgery," commented John T. Treace, Vice President of Marketing for Wright's biologic and extremity products.
This acquisition is expected to be neutral to Wright's adjusted earnings, which exclude acquisition-related costs such as integration charges and non-cash inventory step-up expenses, during the remainder of 2007 and accretive to Wright's earnings thereafter. More detailed guidance regarding the financial aspects of the transaction and its expected impact on Wright's future financial results will be provided in connection with the Company's announcement of its first quarter 2007 financial results on April 30, 2007.
About Wright Medical Group
Wright Medical Group, Inc. is a global orthopaedic medical device company specializing in the design, manufacture and marketing of reconstructive joint devices and biologics. The Company has been in business for more than 50 years and markets its products in over 60 countries worldwide.
This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements made in this press release, other than statements of historical fact, are forward-looking statements. Forward-looking statements reflect management's current knowledge, assumptions, beliefs, estimates, and expectations and express management's current views of future performance, results, and trends. The Company wishes to caution readers that actual results might differ materially from those described in the forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, including the factors discussed in the Company's filings with the Securities and Exchange Commission (including the Company's annual report on Form 10-K for the year ended December 31, 2005 under the heading, "Factors Affecting Future Operating Results," and in its quarterly reports), which could cause the Company's actual results to materially differ from those described in the forward-looking statements. Although the Company believes that the forward-looking statements are accurate, there can be no assurance that any forward-looking statement will prove to be accurate. A forward-looking statement should not be regarded as a representation by the Company that the results described therein will be achieved. The Company wishes to caution readers not to place undue reliance on any forward-looking statement. The forward-looking statements are made as of the date of this press release. The Company assumes no obligation to update any forward-looking statement after this date.
Source: Wright Medical Group
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