WishBone Medical, Inc., a leader in pediatric orthopedic medical devices, announced it has secured $10 million in growth capital financing from existing investors, LKCM Headwater Investments, the private equity arm of Luther King Capital Management which is an SEC-registered investment adviser with approximately $24.7 billion in assets under management.
New funding will enable WishBone to scale up product development and manufacturing facilities to meet increasing market demand for pediatric orthopedic devices
WARSAW, Ind., Aug. 10, 2021 (GLOBE NEWSWIRE) -- WishBone Medical, Inc., a leader in pediatric orthopedic medical devices, today announced it has secured $10 million in growth capital financing from existing investors, LKCM Headwater Investments (“LKCM Headwater”), the private equity arm of Luther King Capital Management which is an SEC-registered investment adviser with approximately $24.7 billion in assets under management. WishBone will use the new funding to accelerate product development, expand its manufacturing facilities and support other operational initiatives to meet growing demands.
As the only pediatric orthopedic company providing single-use, sterile packed procedure kits, WishBone Medical is a rare example of a company that strengthened during the pandemic, realizing sales growth of 29% from 2019 to 2020. The pediatric orthopedics market is valued at over $3.2 billion—expected to grow to $5.0 billion by 2025—as awareness regarding the need for implants designed for children continues to rise.
In the height of the COVID-19 pandemic, WishBone realized 150% orthopedic net sales growth from Q2 2020 to Q2 2021. “We partly attribute our recent success to the strides that healthcare facilities are taking to combat the spread of infection,” says WishBone’s Founder and CEO, Nick Deeter. “In addition to infection control, hospitals are working to equip overwhelmed staff with tools for greater efficiency. It’s becoming increasingly clear that these initiatives can be achieved with the help of single-use, sterile packed kits like ours.”
WishBone Medical will use the new capital to hire additional personnel and expedite product development while expanding the manufacturing facilities of its subsidiary, Red Star Contract Manufacturing. The strategic expenditures will be a means to broadening the company’s product portfolio and increasing inventory in support of sales.
“LKCM Headwater is proud to provide follow-on funding to promote the steady growth of WishBone Medical as they pursue their mission of helping children. The company is in a unique position to meet the intersecting demands for anatomically appropriate devices and single-use, sterile packed solutions, and we look forward to sharing in the success of management’s strategic deployment of this round of growth capital.”
- Michael D. Bornitz, CFA, CPA | LKCM Headwater Investments
The new funding follows a $20 million investment from LKCM Headwater in October 2020 which was used to pay down acquisition related debt. This round will be apportioned to WishBone in two tranches of $5 million this year as required by the company’s cash forecast.
Nick Deeter summarizes, “Our company has scaled rapidly within a few short years, and the momentum only continues to build with the help of our partners at LKCM. The new capital will drive growth and fuel our efforts to make innovative solutions widely available to orthopedic surgeons caring for children. Our team is geared up and excited to grow the niche market of pediatric orthopedics – This is the start of a new chapter for WishBone Medical.”
About LKCM Headwater Investments and Luther King Capital Management
LKCM Headwater Investments is a Texas-based private equity firm that seeks to partner with management teams to build highly successful companies taking an operationally minded approach and provide companies with the tools necessary to build market leaders with sustainable competitive advantages. LKCM Headwater’s investment discipline is derived from several decades of investing capital for their partners and themselves. Luther King Capital Management (LKCM), LKCM Headwater’s investment team, affiliates and related parties collectively represent approximately 30% of committed capital, demonstrating both a passion and belief in their efforts.
LKCM Headwater Investments is affiliated with Luther King Capital Management, an SEC-registered investment advisory firm that provides investment advisory services to high net worth individuals, foundations, endowments, investment companies, pension and profit-sharing plans, trusts and estates, among other organizations. LKCM is independently owned and operated by employees of the firm. Our 89 employees include 56 investment and other professionals, 31 CFAs, 9 CPAs, 3 CFPs, and 33 employees with MBAs. As of June 30, 2021, LKCM assets under management were $24.7 billion.
About Red Star Contract Manufacturing
Red Star Contract Manufacturing is a vertically integrated, lean company that is focused on the medical device industry with expertise in insert injection molding and sterile packaging. Red Star is based in Larwill, IN.
About WishBone Medical
WishBone Medical is a global pediatric orthopedic company committed to providing anatomically appropriate implants and instruments in single-use, sterile packed procedure kits that are designed to prevent infection, reduce overall costs for customers and achieve the best outcomes for children everywhere. The WishBone Medical Family of Companies offers a comprehensive “head-to-toe” product portfolio of innovative systems with operations in Warsaw, IN, Istanbul, and Singapore.
For further information, visit www.WishBoneMedical.com or contact Kaitlyn Hughes, Director of Marketing & Communications, at +1-574-306-4006.
Contact:
Kaitlyn Hughes
+1-574-306-4006
KHughes@WishBoneMedical.com
www.WishBoneMedical.com
