OTTO BOCK ANNOUNCES PURCHASE OF TEC INTERFACE SYSTEMS
MINNEAPOLIS, MINNESOTA January 2, 2002- Today Otto Bock Health Care, a leading international orthotic, prosthetic and rehabilitation product manufacturer and distributor, announced the purchase of St. Cloud, Minnesota-based TEC Interface Systems. Otto Bock’s North American headquarters are in Plymouth, Minnesota.
TEC Interface Systems, based in St. Cloud, Minn., is an award winning company (2002 Fast Company magazine’s FAST 50 Innovator, 2002 Ernst & Young Entrepreneur of the Year Ward, and 1995 Minnesota Small Business of the year) specializing in custom and prefabricated liners, suspension sleeves and post-operative and volume management products for the prosthetic industry. TEC employs 42 staff people at its St. Cloud headquarters.
According to Bert Harman, President of Otto Bock North and South America, Otto Bock acquired TEC Interface Systems because “TEC’s technologies are highly innovative, and perfectly complement our existing portfolio. Their approach to the market—which is based on an intense focus on the needs of the prosthetic user—are consistent with Otto Bock’ s world-wide approach. Both companies are deeply committed to educating the practitioner. We think that not only are our products similarly innovative, but our cultures are also very much alike.”
Harman states that, “As the number one global manufacturer of prosthetic components, purchasing TEC Interface Systems is in line with our corporate strategy of investing in forward-looking technologies that support our goals for aggressive growth. Offering their innovative products through our international sales and distribution channels will result in exponential growth.”
TEC founder Carl Caspers, CPO, agrees with Harman’s assessment. “We think the companies are similar in approach to customers and employees. There’s a good fit in management styles. We believe that the global sales and distribution network of Otto Bock is the missing element to our formula for global success. I’m very comfortable that Otto Bock will take good care of TEC’s history—and it’s people.” In addition, Caspers states that, “The close physical proximity of the two companies here in the U.S. is a real plus for our employees.”
Otto Bock’s headquarters are located less than 50 minutes from TEC’s existing plant in St. Cloud, Minnesota. According to Dave Wall, Vice-President of Manufacturing for Otto Bock, “The current operations of the two companies will be integrated over the course of the next six months, with special focus on capitalizing on complementary research and development areas. This integration will be undertaken very carefully, in order not to interfere with TEC’s current market momentum. There are no plans for job eliminations at the TEC facility at this time.”
“Most of the senior management of TEC will play a role at Otto Bock”, states Wall. Further, Wall adds that, “Otto Bock has entered into a long term development consulting agreement with the company’s founder, Carl Caspers, so that we can keep his passion for the patient focused on future products and future clinical solutions—under the Otto Bock brand.”
Established in 1958, Minneapolis, Minnesota-based Otto Bock Health Care is the North and South American corporate headquarters of Otto Bock Company Group, based in Duderstadt, Germany. Otto Bock has more than 3,600 employees worldwide and produces over 20,000 types of prosthetic and orthotic components, rehabilitation products and technical plastics, and also provides information technology services.
Otto Bock’s track record with acquisitions in North America is admirable. In 2001, Otto Bock acquired Springlite, Inc., a Salt Lake City based manufacturer of carbon fiber prosthetic components. Since that time, sales and employment at the Salt Lake City, have tripled.
“This acquisition”, states Harman, “will be good for Otto Bock, good for the people at TEC, and, eventually, good for employment in the state of Minnesota.”
Terms of the deal were not disclosed.
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