DJO Global to acquire diabetic footwear provider

DJO Global, Inc. announced that one of its indirect subsidiaries has signed a definitive agreement to purchase Rikco International, LLC’s Dr. Comfort, for approximately $254.6 million in cash. The transaction is expected to close within 30 to 45 days, subject to customary governmental approvals and closing conditions, according to a company press release.

Headquartered in Mequon, Wisconsin, Dr. Comfort is a leading developer, manufacturer and marketer of therapeutic footwear and related medical and comfort products serving the rapidly growing diabetes care market in podiatry practices, orthotic and prosthetic centers, home medical equipment providers and independent pharmacies. DJO said that for the year ended December 31, 2010, the company generated net sales of $71.8 million, reflecting growth of 22.5% over net sales of $58.6 million for the year ended December 31, 2009.

"Dr. Comfort has expanded the diabetic footwear market by providing the medical community with a broad assortment of high-quality and attractive prescription-based footwear styles in a market that has traditionally been served by unattractive and clinical-looking footwear products," Les Cross, DJO Global president and chief executive officer, stated in the release. "With innovative thinking and sales channel expertise, Dr. Comfort has driven provider and patient awareness of medically necessary diabetic footwear as an important modality that can prevent more serious diabetic complications such as foot ulcers. As a result, [it] has achieved very strong growth and the market leading position in diabetic footwear in the 8 years it has been in business. “