OrthoPediatrics Corp. divested "substantially" all of the assets related to Vilex in Tennessee, its adult product offering, the orthopedic company announced Jan. 6.
Six things to know:
1. The service line was sold to Vilex, an affiliate of Squadron Capital, in a Dec. 31 transaction.
2. Vilex now has a restricted license to manufacture and sell products utilizing the external fixation technology developed by OrthoPediatrics affiliate Orthex. OrthoPediatrics has the right to use and sell certain intellectual property that was acquired.
3. OrthoPediatrics first announced plans to divest the Vilex Adult Business when it acquired Vilex in Tennessee and Orthex in June 2019. Squadron helped finance those deals.
4. The divestiture reduced the amount OrthoPediatrics owed to Squadron Capital under a Term Note B by $25 million. OrthoPediatrics repaid the remaining $5 million of principal outstanding, plus all accrued interest, with funds from its revolving credit facility with Squadron Capital.
5. OrthoPediatrics President and CEO Mark Throdahl said the divestiture demonstrates his company's ability to strategically position itself for sustainable future growth and maintain a leading position in pediatric orthopedics.
6. OrthoPediatrics markets 33 surgical systems for specialties including trauma and deformity, scoliosis, and sports medicine. It distributes products in the U.S. and 43 other countries.