Hanger Orthopedic acquires Seattle Limb

Maryland Watch

August 20, 1998

Hanger Orthopedic Group Inc. of Bethesda announced yesterday the acquisition of MODEL and Instrument Development Corp., also known as Seattle Limb Systems, a manufacturer of components for artificial limbs. Terms were not disclosed.

Ivan R. Sabel, Hanger's chairman and chief executive, said Hanger has been "a substantial customer" of Seattle Limb, which will remain in Seattle, and expects to realize savings by buying a major supplier.

Hanger operates 244 centers in 32 states to fit patients with braces and artificial limbs. About 10 are in the Baltimore-Washington area.

Sabel said Hanger is continuing to seek acquisitions, primarily in patient-care practices rather than in manufacturing. The company generates about 80 percent of its revenue from patient care, he said, and the rest from production and distribution.

Seattle Limb had $7.3 million in sales in 1997, not counting sales to Hanger. Hanger booked $145.6 million in sales last year, acquisitions having driven that up sharply from $66.8 million in 1996. Its shares closed yesterday at $16, down 25 cents.

Pub Date: 8/20/98

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