September 2007

Dynatronics acquires 6 distributors

Dynatronics Corporation recently acquired six of its key independent distributors — a purchase that is anticipated to increase the company’s overall revenue by an estimated 80 percent by June 30, 2008.

The six companies include Rajala Therapy Sales Associates of Pleasanton, Calif.; Responsive Providers, Inc. of Houston; Therapy and Health Care Products, Inc. of Girard, Ohio; Cyman Therapy, Inc. of Detroit; Al Rice and Associates, Inc. of Jeffersonville, Ind.; and Theratech, Inc. of Minneapolis. 

“We are thrilled to join forces with six of our top dealers,” stated Kelvyn H. Cullimore Jr., company chairman and president. “Each of these dealers represents, in our opinion, the best rehab products sales force in the territories they serve. Importantly, these acquisitions provide competitive advantages and form a vital part of Dynatronics’ strategic plans to strengthen distribution channels and improve company performance.” 

The six dealers generated approximately $19 million in combined revenues in 2006. After adjusting for the direct sales of Dynatronics’ products to these dealers, the company’s overall revenues are expected to increase by an estimated $15 million.  

The total price paid for the six separately-negotiated acquisitions was approximately $8.3 million — $3.3 million in cash and 4.6 million shares of Dynatronics’ common stock.

Source: Dynatronics Corporation, www.dynatronics.com

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