Wright Medical Continues Shopping Spree

Wright Medical Group Inc. has acquired certain assets of Pennsylvania-based R&R Medical Inc. for an initial cash payment of $8 million.

Arlington, Tenn.-based Wright Medical (NASDAQ: WMGI) has purchased the R&R external fixation product line and will potentially give R&R additional cash payments on top of the initial $8 million based on future financial performance of the acquired assets.

R&R external fixation products include an array of foot and ankle focused fixation devices, which address procedures used by foot and ankle surgeons and surgical podiatrists.

Wright Medical’s R&R deal marks the second acquisition for the company this month after completing its earlier $17 million acquisition of Darco International Inc.’s reconstructive foot surgery line of products.

With the R&R external fixation line now under its umbrella, Wright Medical Group will immediately begin offering the products through its U.S. sales force and will expand into international markets later in 2007.

“External fixation is a staple in the foot and ankle surgeon’s toolbox, and the addition of R&R’s innovative and proven product platform facilitates a swift entree for Wright into this important market segment,” said John T. Treace, vice president of marketing for Wright’s biologic and extremity products, in a statement. “The R&R product line is highly complementary to our rapidly expanding line of reconstructive and biologic products for foot surgery.”

The acquisition is not expected to affect Wright’s adjusted earnings, which exclude acquisition-related costs.

Wright Medical Group is expected to release a more detailed guidance regarding the financial aspects of the R&R acquisition in its upcoming announcement of its first quarter 2007 results.

Arlington, Tenn.-based Wright Medical Group, Inc., is an international orthopedic medical device company that specializes in the design, manufacture and marketing of reconstructive joint devices and biologics.

SOURCE: MEMPHIS BUSINESS JOURNAL