websites - https://www.bostonoandp.com/ and https://www.orthopediatrics.com/
Tiger's Initial Thoughts
Orthopediatrics (OP) has acquired another "dog" using financial leverage and they will not be able to increase sales to pay back the debt. This is another distressed asset purchase. BO as a company was on its way down. They have been closing down clinics and lost business to spinal technology or orthotists making their own version.
OP bought MD Orthopedics as a distressed asset also. Floundering companies were the founders were retired and just cashing checks. No growth. No reinvestment in R&D or Sales.
OP also bought ApiFix and did nothing with it. It was a non-accretive purchase and the CEO has downplayed ApiFix in earnings calls.
OrthoPediatrics buys Boston Orthotics & Prosthetics for $22M (Seeking Alpha)
OrthoPediatrics (NASDAQ:KIDS) said it has acquired Boston Orthotics & Prosthetics for an upfront cash payment of $22 million.
The company said, to advance the deal, it has closed a debt financing with MidCap Financial which provides up to $80 million of capital, through the combination of a term loan and revolving loan.
Post closing, KIDS wil...
