Orthofix to sell off sports medicine business

Orthofix International has announced plans to sell off its sports medicine business unit to Water Street Healthcare Partners.

The company will receive $157.5 million (97.1 million pounds) from Water Street – a private equity firm with an exclusive focus on the healthcare industry – in exchange for the business, with the deal set to close during the second quarter of this year.

Offering a portfolio of bracing and cold therapy products for a variety of sports medicine-related conditions, the division was originally acquired by Orthofix in 2003 as part of the takeover of Breg.

The divesture of this business will allow the company to increase its focus on its core areas of repair hardware and regenerative biologics and stimulation solutions.

Robert Vaters, president and chief executive officer of Orthofix, said: "We believe this deleveraging event and resulting borrowing capacity will allow us to expand and enhance both our spine and orthopaedic business units in a way that accelerates our ability to create shareholder value."

This week, the company also reported its financial results for the first quarter of 2012, during which it experienced three percent year-on-year sales growth to achieve a total of $143.1 million.