DJO Inc. picked up the compression therapy products manufacturer Elastic Therapy Inc.
Asheboro, N.C.-based Elastic Therapy Inc. makes makes garments designed to treat pain from venous disorders, fitting into DJO’s strategy for growing its vascular franchise, according to a press release.
“While ETI is perhaps the largest manufacturer of private label medical compression therapy products, it has a small share today of the estimated $1.5 billion global medical compression products wholesale market, and we are excited about the many growth opportunities that DJO plans to help ETI achieve" DJO CEO Les Cross said in prepared remarks.
The San Diego-based based company completed the acquisition deal on Jan. 4; the financial terms for which were not disclosed.
Elastic Therapy reported preliminary revenues of about $26 million, according to DJO. The company financed the deal with its revolving credit and does not expect any "material change in its ratios of total debt or senior secured debt to pro forma consolidated EBITDA," according to its prepared statement.