Ossur to acquire Generation II Group
Ossur hf. (symbol HL/OSSR), announced today that the Company has signed a definitive agreement to acquire the Generation II Group, a leading North American developer and manufacturer of orthotic knee braces, for $31 million.
Generation II manufactures and markets a diverse product line of customized and off-the-shelf braces and specializes in braces for ligament injuries, osteoarthritis, and post operative conditions. Generation II has 168 employees with operations in Vancouver, Canada; Seattle, Washington in the US; and Brussels in Belgium, and sell its products principally in North America and Western Europe.
Ossur is one of the world's leaders in the manufacturing and sale of prosthetic knees and feet. In addition, Ossur manufactures and markets orthotic products primarily in Scandanavia. The acquisition of Generation II will expand Ossur's product line and establish a platform for Ossur into the orthotic industry.
"The acquisition represents a milestone in the Ossur expansion into the orthotic market. Generation II's focus on research and development, its diverse portfolio of high quality innovative products and the spirit of its employees make Generation II a perfect fit with Ossur and our corporate culture" said Mr. Jon Sigurdsson, CEO of Ossur.
"This is an extremely positive development for our customers, who will benefit from a broader product range and from Ossur's ability to enhance our already strong commitment to research and development," said Dean Taylor, founder and CEO of the Generation II Group.
Alan Young, President of Generation II in the US, said that "this merger offers our staff the opportunity to work on new and exciting challenges with one of the premier companies in its field. The philosophies of our companies are similar as we both emphasize providing top quality solutions for our customers through the use of advanced technology."
In the twelve month period ending September 30, 2003, estimated revenues will exceed $20 million with a gross margin slightly above Ossur's.
Closing is scheduled to be within the next three weeks. At that time, investors and other interested parties are invited to attend a presentation by the company.
ABOUT GENERATION II. Further information on Generation II is available on the following websites: "www.g2orthotics.com" and "www.gen2.com"
ABOUT OSSUR. Further information is available on Osssur's website: "www.ossur.com"