dj Orthopedics to Acquire Aircast

Rehabilitation and regeneration product manufacturer dj Orthopedics Inc. (Vista, CA), which targets the nonoperative orthopedic and spine markets, has announced plans to acquire rival Aircast Inc. (Summit, NJ) for $290 million in cash. Industry analysts generally hailed the move as further strengthening dj Orthopedics' presence in the rapidly growing sports medicine and rehabilitation markets. The acquisition will reportedly double dj Orthopedics' international sales while adding a line of complementary—and formerly competitive—products, as well as Aircast's vascular systems devices.

The more than 600 rehabilitation products manufactured by dj Orthopedics include rigid knee braces, soft goods, pain-management products used for treatment of chronic conditions and for recovery after surgery or injury, and bone-growth stimulation devices that are used to treat nonunion fractures or as an adjunct therapy after spinal-fusion surgery. The company's popular Donjoy brand braces are used by many professional athletes as well as weekend decathletes.

Aircast also manufactures nonsurgical orthopedic devices and is widely known for its arm wrap for treating sports-related injuries, including tennis and golfer's elbow. According to the company, one out of every five U.S. families use Aircast's products. Its portfolio also includes ankle-bracing products, cold-therapy systems, and fracture boots, as well as the VenaFlow, a device used by hospitals to prevent deep-vein thrombosis, a blood-clotting condition that can occur after surgical procedures.

Leslie H. Cross, dj Orthopedics' president and CEO, said, “This acquisition clearly fits squarely into our growth strategy of strengthening our lead in our core domestic businesses and expanding our international business so it becomes a larger piece of the total company.” Cross also emphasized that the deal opens up new opportunities for the company in the growing hospital-based vascular systems business. He expects Aircast's VenaFlow system to be “a solid contributor” to the company's future growth.

Both Aircast and dj Orthopedics sell their products worldwide through agents, distributors, and direct sales forces. Customers include orthopedic, podiatric, and spine surgeons; orthotic and prosthetic centers; third-party distributors, hospitals, surgery centers, physical therapists, athletic trainers, and other healthcare professionals.