January 2013

DJO Global acquires Exos, expects new products to increase operating margins

Vista, CA-based DJO Global, a provider of medical device solutions for musculoskeletal and vascular health and pain management, announced a merger agreement with Exos Corporation last month; the deal went into effect on December 28.

Arden Hills, MN-based Exos, a medical device company focused on a thermoformable external musculoskeletal stabilization system, has issued and pending US patents for the application, materials, and construction of its products and continues to add to its intellectual property portfolio.

Exos’s thermoformable braces, splints, and casts for treatment of fractures and other injuries requiring stabilization are prepared for application using a waterless, dry-heat preparation system. The system is waterproof, removable, adjustable, and reformable.

According to DJO Global, this technology could significantly change clinical practices for external musculoskeletal support and stabilization. DJO LLC, a wholly-owned subsidiary of DJO Finance, has been Exos’s exclusive US distribution partner since October 2011.

Because DJO LLC is already Exos’s distribution partner the merger will not impact DJO Finance’s reported net sales, but is expected to increase its operating margins and income from the sale of Exos products, DJO Global reported.

DJO has not disclosed the financial terms of the merger, but the company indicated that, on a pro forma basis, taking the acquisition of Exos into consideration, it does not expect any material changes in DJO Finance’s ratios of net first lien debt or net total debt to pro forma consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization.)

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