Fuse Medical (OTC:FZMD) said yesterday that it agreed to acquire orthopedic implant distributor CPM Medical Consultants for an undisclosed amount.
Richardson, Texas-based CPM stocks orthopedic implants and biologics. Fuse Medical said it expects the deal to push its consolidated sales to $35 million next year. The buyout is slated to close by the end of 2017. Fuse is also based in Richardson.
“We are thrilled to have the CPM family join the Fuse team and look forward to welcoming new business associates to Fuse. We are confident that the consolidated Fuse and CPM organizations will provide the necessary platform to achieve our numerous growth and expansion goals,” Fuse CEO Christopher Reeg said in prepared remarks. “The acquisition of CPM is an ideal complement to our strategic objectives, as it brings an experienced and proven distribution organization consisting of direct sales employees, independent sales agents, and sub-distributors who are focused in specific surgical areas. In developing our strategies in this market sector, we believe this new sales channel will provide us with an opportune pipeline for the expansion of national distribution and the launch of new product offerings, both internally developed and acquired.”
“We are excited with the expected benefits both organizations will gain from this transaction. CPM brings the ideal combination of broad product assortment, sales and distribution, and employee talents in a strategic market sector with outstanding growth potential. We expect our extensive product portfolio to strengthen and complement Fuse,” added CPM founder & owner Mark Brooks, who is also chairman of Fuse Medical. “The prospect of combining the collective Fuse and CPM product portfolios is synergistic to both organizations.”
