Hanger Orthopedic Group, Bethesda, Md., said it will acquire J.E. Hanger of Georgia, Alpharetta, a privately owned provider of orthotic and prosthetic services, for $44 million in cash and 1 million shares of its common stock.
The deal is valued at $49 million, based on a recent price of Hanger stock. The acquisition is expected to be completed by the fall, creating the "world's largest" orthopedics and prosthetics practice management company with combined revenues exceeding $110 million.
Both companies trace their beginnings to James Edward Hanger, the first amputee of the American Civil War, who devised and built artificial limbs for wounded war veterans.
Hanger, which had net sales of $52.2 million in 1995, provides orthotic and prosthetic services in 81 patient-care centers in 23 states. The company also has assembled a national managed-care network of orthotic and prosthetic providers called "Opnet."
J.E. Hanger has 93 patient-care centers in 15 states. Only six of them operate in cities where Hanger has a center. J.E. Hanger also is the largest U.S. distributor of prosthetic and orthotic supplies and components, Hanger said.