SAN DIEGO — DJO Global announced March 15 that it has signed a definitive agreement to purchase therapeutic footwear maker Dr. Comfort for $254.6 million in cash.
The acquisition gives DJO the number one share in the "large and underserved diabetic footwear market," which is "rapidly growing" for podiatry practices, orthotic and prosthetic centers, HME providers and independent pharmacies, the company said in a release. The transaction is expected to close within 30 to 45 days.
The release said Mequon, Wis.-based Dr. Comfort generated net sales of $71.8 million in 2010, a 22.5 percent increase over 2009 net sales of $58.6 million.
The U.S. diabetic footwear supply market is estimated at $150 million to $200 million for 2010, DJO said, and is largely in the early stages of development. The company estimated that of the more than 11 million diabetics who would benefit from therapeutic footwear due to peripheral neuropathy and poor circulation, less than 8 percent are presently receiving them.
That gives the eight-year-old Dr. Comfort a "robust runway for growth," said DJO President and CEO Les Cross, noting the company offers "attractive prescription-based styles in a market that has traditionally been served by unattractive and clinical-looking footwear products."
Eric Lorenz, president of Dr. Comfort, his management team and employee teams will join DJO Global, which makes medical devices for musculoskeletal health, vascular health and pain management.
DJO's products include the Aircast, Chattanooga, CMF, Compex, DonJoy, Empi, ProCare and DJO Surgical brands.
