SAN DIEGO — DJO Global announced March 15 that it has
signed a definitive agreement to purchase therapeutic footwear
maker Dr. Comfort for $254.6 million in cash.
The acquisition gives DJO the number one share in the "large and
underserved diabetic footwear market," which is "rapidly growing"
for podiatry practices, orthotic and prosthetic centers, HME
providers and independent pharmacies, the company said in a
release. The transaction is expected to close within
30 to 45 days.
The release said Mequon, Wis.-based Dr. Comfort generated net
sales of $71.8 million in 2010, a 22.5 percent increase over 2009
net sales of $58.6 million.
The U.S. diabetic footwear supply market is estimated at $150
million to $200 million for 2010, DJO said, and is largely in the
early stages of development. The company estimated that of the more
than 11 million diabetics who would benefit from therapeutic
footwear due to peripheral neuropathy and poor circulation, less
than 8 percent are presently receiving them.
That gives the eight-year-old Dr. Comfort a "robust runway for
growth," said DJO President and CEO Les Cross, noting the company
offers "attractive prescription-based styles in a market that has
traditionally been served by unattractive and clinical-looking
footwear products."
Eric Lorenz, president of Dr. Comfort, his management team and
employee teams will join DJO Global, which makes medical devices
for musculoskeletal health, vascular health and pain
management.
DJO's products include the Aircast, Chattanooga, CMF, Compex,
DonJoy, Empi, ProCare and DJO Surgical brands.
