Langer, Inc. sold substantially all of the operating assets related to its Langer branded custom orthotics and related products business to an affiliate of The Orthotic Group, a manufacturer of prescription custom foot orthotics, orthotic footwear and gait analysis equipment headquartered in Markham, Ontario.
The company’s Deer Park, NY facility as well as its sales office in Markham, Ontario are included in the transaction. The purchase price was approximately $4.7 million paid in cash at closing, including $475,000 to be placed in escrow to satisfy potential indemnification claims. The purchase price will be subject to a post-closing working capital adjustment within approximately 90 days.
Net proceeds, after transaction costs, are expected to be approximately $4.1 million. The company expects to recognize a minimal gain on the sale.
Langer, Inc. will continue to exist as a corporate entity and its ongoing business will include that of its wholly-owned subsidiaries Silipos Inc. and Twincraft Inc. Silipos is a provider of quality medical products to the long-term care, orthopedic, orthotic and prosthetic markets. Through its wholly owned subsidiaries Twincraft and Silipos, the company offers a diverse line of bar soap and other skincare products for the private label retail, medical and therapeutic markets.
Langer was represented in the transaction by The Walden Group, a strategic healthcare investment banking firm based in Tarrytown, NY.
