ReAble to acquire DJO for $1.6 billion

18 July 2006

Mumbai: ReAble Therapeutics Inc, controlled by buy-out firm Blackstone Group, will acquire DJO Inc. for $1.3 billion. ReAble will acquire all outstanding shares of DJO in a transaction valued at approximately $1.6 billion, including the assumption of debt.

ReAble Therapeutics Inc. is a diversified medical device company focused on rehabilitation, pain management, physical therapy and orthopedics while DJO is a global provider of products and services for musculo-skeletal and vascular care.

The agreement provides for a cash payment of $50.25 per share for each outstanding share of DJO common stock, representing a premium of approximately 25 per cent over DJO''s average closing share price for the 30 trading days ended July 13.

A Blackstone Group affiliate, which is the controlling shareholder of ReAble, has committed to provide the equity financing for the transaction.

DJO''s board of directors and a transaction committee of independent directors have unanimously approved the transaction and recommends that DJO stockholders approve the merger.

DJO and ReAble offer complementary products in orthopedic rehabilitation and pain management, and, when combined, will offer a broad range of products and services through multiple sales channels. The combination is expected to quickly provide value to customers by utilising the existing capabilities and product portfolios of both companies.

"DJO and ReAble have established strong positions in the orthopedic and rehabilitation markets. We are delighted to be joining them together. The resources of the combined company will allow us to develop even better and more innovative products, and to take care of more of the needs of more patients and caregivers than ever before. The strategic fit, both in the US and overseas, is absolutely compelling," Ken Davidson, CEO of ReAble, said.