ArthroCare Buys Denmark Medical Device Distributor

ArthroCare Corp. has acquired Aarhus, Denmark-based OrtoConcept Scandinavia for an undisclosed amount.

OrtoConcept is a medical device distributor that specializes in distributing sports medicine and spine devices to surgeons throughout Denmark, Norway and Sweden. Sten Dahlborg, senior vice president and general manager of international operations for ArthroCare, says the acquisition will help ArthroCare (NASDAQ: ARTC) boost long term revenue growth potential and get direct representation in markets outside the U.S.

“The establishment of direct sales representation in Scandinavia through OrtoConcept’s extremely strong customer relations within the orthopedic community … will further bolster our important relationships with Scandinavian surgeons,” Dahlborg says. “OrtoConcept’s employees are already intimately familiar with our products and processes, so the integration of the business should be relatively seamless and we are proud to have them on board our team.”

OrtoConcept began distributing ArthroCare’s products in 2002 and has since expanded its operations into Norwegian and Swedish markets.

Austin-based ArthroCare has come under fire in the last several months from short sellers who have accused the company of allegedly having an under-the-radar relationship with DiscoCare, a reimbursement company it recently acquired for $25 million in cash, in order to increase its sales.

On April 4, a class action lawsuit brought against the company alleged ArthroCare has profited from providing misleading financial information. And in early March, the company said it would look into financial strategies that may include a recapitalization, a stock repurchase, a sale or disposition of one or more corporate assets or a strategic business combination.

SOURCE: Austin Business Journal