The chief executive officer of Warsaw-based OrthoPediatrics Corp. says a nearly $40 million investment will allow the company to expand in Indiana and throughout the world. Mark Throdahl says his company plans to add dozens of engineering and marketing workers in Kosciusko County by the end of the year to support new surgical systems. He tells Inside INdiana Business the funding from Connecticut-based Squadron Capital LLC will allow the company to increase its focus in key Asian markets including Japan, South Korea and Taiwan. May 6, 2014
WARSAW, Ind. (May, 5, 2014) – OrthoPediatrics Corp. introduced two major new products at last week's meeting of the Pediatric Orthopedic Society of North America. The Response Spine System and the OrthoPediatrics Anterior Cruciate Ligament (ACL) Reconstruction System represent the Company's expansion from the pediatric Trauma and Deformity Correction market into the Scoliosis and Sports Medicine markets. OrthoPediatrics now offers the broadest line of surgical systems used in the three segments of the pediatric orthopedic industry.
In order to support these product introductions, the anticipated increase in employment in Warsaw, and other capital intensive initiatives, OrthoPediatrics today announces that it has negotiated a $37 million equity investment by its largest shareholder and financial partner, Squadron Capital LLC. This new investment, will be used, in part, to support OrthoPediatrics' sales growth in 28 countries around the world. The investment will also enable the Company to reduce and restructure the debt on its balance sheet. It is anticipated that this will be the last private capital raise needed by the Company.
Mark C. Throdahl, OrthoPediatrics' President and CEO, said, “In an environment where major orthopedic companies are consolidating and cutting headcount, OrthoPediatrics is expanding employment and investing in important new surgical systems. We are successfully implementing our strategy of building an enduring orthopedic company and surrounding pediatric orthopedists with all the surgical systems they need. We are committed to improving the lives of children with orthopedic conditions through the development of new products and supporting pediatric surgical associations in the United States and abroad.”
About OrthoPediatrics Corp.
OrthoPediatrics is the only orthopedic company focused exclusively on orthopedic devices for children. Founded in 2007, the Company has become the only end-to-end provider to the pediatric orthopedic surgeon, introducing 16 surgical systems – the broadest pediatric offering in the orthopedic industry. It has also developed the only global pediatric orthopedic sales and distribution system, with distributors in 27 countries outside the USA. Over the last two years, OrthoPediatrics has increased its headcount from 48 to an anticipated 87 by year end. It has also indirectly added to local employment at the contract manufacturing companies that produce its products.
About Squadron Capital LLC
Squadron Capital seeks to acquire and invest in operating companies located both in the US and abroad. Founded in 2008, Squadron Capital is an investment vehicle funded by a Chicago-based trust and led from its headquarters near Hartford, Connecticut. Squadron Capital has an investment focus on developers and manufacturers of orthopedic medical devices, implants and surgical instrumentation.
Source: OrthoPediatrics Corp.