Generation Growth Capital Inc., a Milwaukee-based private equity firm, has acquired the continuous passive motion division from Otto Bock Healthcare Canada Ltd., based in Pickering Ontario. Over the next two months, the division will be merged into Quality Assembly and Logistics LLC, one of Generation Growth Capital’s portfolio companies, which is based in Marinette, Wis.
Terms of the acquisition were not disclosed.
The former division of Otto Bock manufactures devices that are used in the post-surgical rehabilitation process of various joints including knees, ankles, shoulders, and wrists. Quality Assembly and Logistics makes electro-mechanical assemblies for a number of OEM customers with a focus on medical imaging equipment, and the division presents it with a significant expansion opportunity, said John Reinke, director with the firm.
“We have reviewed many potential acquisitions for QAL over the past two years and this one was a direct fit,” he said. “The CPM division provides QAL with a captive product line that is well positioned to grow with the health care needs of our aging population. It is exciting to bring new jobs to our local community by leveraging QAL’s industry reputation and competencies in medical equipment manufacturing.”
Quality Assembly currently has 39 employees. When the former division of Otto Bock is absorbed into its operations in Marinette, the company will add another 15 positions. The company’s sales are expected to increase by 50 percent because of the acquisition, Reinke said.
