OrthoPediatrics (NSDQ:KIDS) announced today that it completed the sale of substantially all of the assets related to the adult product offering of Vilex in Tennessee to Squadron Capital affiliate Vilex.
The divestiture was completed on Dec. 31, 2019, after OrthoPediatrics reported its plan to divest the Vilex adult business when it acquired Vilex in Tennessee in June 2019. As consideration for the Vilex adult business, OrthoPediatrics’ amount owed under its Term Note B to Squadron Capital is now reduced by $25 million.
The remaining $5 million in principal outstanding funds was repaid by Warsaw, Ind.–based OrthoPediatrics in full on Dec. 31, 2019.
OrthoPediatrics also earned the right to use and sell certain intellectual property acquired by Vilex as part of the Vilex adult business, according to a news release. Stifel served as OrthoPediatrics’ exclusive financial advisor, while Bingham Greenebaum Doll served as the company’s exclusive legal advisor in the sale.
Vilex engineers orthopedic surgical devices such as staples, screws, plates, joint implants, fusion devices and more.
“We were encouraged with the high level of interest we received for the Vilex Adult Business during a competitive bidding process last fall,” OrthoPediatrics president & CEO Mark Throdahl said in the release. “Squadron’s highest bid, together with their help financing the acquisition last June, demonstrates Squadron’s continuous support that has contributed to our on-going success. This divestiture also demonstrates our ability to execute on our strategic objective of positioning OrthoPediatrics for sustainable future growth and maintaining our leading position in pediatric orthopedics.”
“Vilex’s adult assets and extensive research and development pipeline provide a noteworthy investment opportunity for us,” added Squadron Capital president David Pelizzon. “We are excited to be able to offer their compelling technology and strategically focus on developing a commercial strategy to grow the adult business. We appreciate OrthoPediatrics’ dedication to pediatrics and look forward to increasing adoption of the technology for adult patients.”