ERGORESEARCH ANNOUNCES ACQUISITION OF LABORATOIRE PODOTECH INC.
Published November 27 2012 in What's New
Founded in 2006 by Mr Michel Bergeron and Mr Luc Savard, two professors of orthotics and orthopedic prosthesis techniques at Collège Montmorency in Laval, Podotech is a Quebec firm offering specialized assessment and manufacturing services for custom-fit foot orthotics as well as custom made shoe and “comfort” shoe sales in the Laval and Lower Laurentian regions. “We are proud to join the Ergoresearch team, the Quebec leader in the field of orthopedics. The group’s excellence will serve our patients’ greater wellness,” stated Michel Bergeron.
Podotech shares were acquired through an Ergoresearch subsidiary, Orthoconcept (2008) inc., 51% of which is owned by Ergorecherche Inc.
The purchase price amounted to $330,000, and is paid out as follows:
- $239,826.84 in cash, on closing;
- $30,173.16 by the assumption of existing long-term debt;
- $60,000 in the form of a promissory note to the sellers, to be paid out over three years at an annual interest rate of 3.75%.
The purchase price is subject to adjustment according to the total working capital available on October 1 2012, date at which the transaction takes effect. The working capital is stated to be $49,500.
According to Podotech’s unaudited financial statements for the year ended May 31 2012, the firm recorded $384,251 in revenues. Also, unaudited financial statements for the four-month interim period ending September 30 2012 show $156,829.32 in revenues, an increase compared to the preceding year. Average earnings before interest, taxes, depreciation and amortization (EBITDA) over the past three fiscal years amount to $80,115.
Ergoresearch Ltd is self-financing this acquisition; no shares have been issued and no debt incurred to cover this transaction.
“Beyond this acquisition, one that heightens our presence across the Laval and Lower-Laurentian territories, we have the privilege of welcoming high-calibre clinicians who will contribute to the future successes of our group. Michel Bergeron, Podotech’s founding shareholder, will be joining the Ergoresearch research and development team,” declared Sylvain Boucher, President and CEO of Ergoresearch.
Ergoresearch has developed Quebec’s leading network of orthotics clinics, with over 60 corporate and satellite centres under the Clinique du pied Équilibreand Orthoconcept banners. The leading manufacturer of “intelligent” foot orthotics and specialty orthotics, it is a trend-setter in creating durable medical equipment and software for the orthopedics market. Ergoresearch has developed and commercialized Expert-Fit™, the first robotized custom-fit orthotics manufacturing software program, launched the first Living Lab in Canada and more recently, a new generation of world-patented orthotic device called the OdrA, that revolutionizes the treatment of pain associated with knee osteoarthritis. Ergoresearch Ltd is listed on the Toronto Stock Exchange (TSX-V) under the TSX-V Symbol: ERG.
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Sources – Information:
Sylvain Boucher, President and CEO – Ergoresearch Ltd Tel.: 450-973-6700, ext. 213 / firstname.lastname@example.org
Isabelle Vallée, Director of Communications and Public Relations – Ergoresearch Ltd
Tel.: 450-973-6700, ext. 233 / 514-377-0485 / email@example.com