Encore Medical to Acquire Empi for $360 Million

In a move that will more than double its size, Encore Medical Corp. (Austin, TX, USA) has agreed to acquire Empi, Inc. (St. Paul, MN, USA) for about U.S.$360 million in cash and stock.

Encore designs, markets, and distributes a comprehensive range of orthopedic devices, sports medicine equipment, and related products for the orthopedic industry. The company also has an orthopedic rehabilitation division. About 19% of Encore is owned by Galen Partners (New York, NY, USA). Empi is a medical device company focused on products for pain management, orthopedic rehabilitation, and physical therapy. The company also develops and distributes noninvasive medical devices and accessories used by patients for at-home therapy. Empi's 2003 revenues were $150 million.

"Nearly 25% of Empi's sales are derived from Europe and its German-based subsidiary, Ormed. This will enable Encore to more rapidly expand the distribution of all our products in Europe,” noted Paul Chapman, president and CEO of Encore. "Ormed sells many of its products directly to orthopedic surgeons. The company has important relationships and does business with over 3,000 European orthopedic surgeons.”


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