Orthotic Holdings

The Story

Orthotic Holdings, Inc. (“OHI”), is a leading manufacturer, marketer and distributor of high quality, predominantly custom and branded medical products that treat foot, ankle and leg related conditions and diseases. The company is recognized as a North American market leader with entrenched relationships in each of its core healthcare provider sales channels through the development and deployment of its innovative foot scanning technology solution.

Transaction Dynamics

A partnership with management to recapitalize the company.  The CEO reinvested his entire proceeds into the transaction.

Investment Thesis

  • 2nd largest company in North American custom orthotics micro-market; dominant company in Canadian chiropractic market
  • Diverse customer base across multiple healthcare channels
  • Platform for continued industry consolidation
  • Significant organic growth opportunity in U.S. with GaitScan technology
  • Long history of revenue growth and strong margins
  • Solid underlying demand drivers

Incline Value Enhancement

  • Expanded product portfolio with three add-on acquisitions: Langer Biomechanics in 2008, River Biomechanics in 2010, and Arizona AFO in 2011
  • Retained operational improvement consultant to assess and map manufacturing plan
  • Enhanced existing scanning technology while adding new solutions to promote recurring revenue
  • Doubled earnings over the investment period
  • Improved EBITDA margins from 15.5% in 2009 to 24.6% in 2012

Headquarters

Markham, ON (Canada)

Industry

Specialized Light Manufacturing

Investment Date

September 2008

Status

Realized

Fund

II

On behalf of the management team and our employees, I thank Incline Equity Partners for their collaborative partnership that acted as the catalyst for achieving our growth objectives. Bruce Marrison, Former Chief Executive Officer

Please read our Regulatory Information

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