A lean Kirschner Medical Corp. became even leaner yesterday by announcing the sale of its veterinary orthopedic division to a Phoenix, Md., company headed by a former Kirschner officer.
Osteo-Technology International Inc. has agreed to buy the Kirschner division that makes pins and wires and other orthopedic products for racehorses and household pets, according to John A. Roberts, vice president and general counsel to Osteo-Technology.
Osteo-Technology President Ian P. Murray was Kirschner's vice president for international sales and marketing until February, when he left to run Osteo-Technology full-time. The company's San Francisco division, which Mr. Murray started last year, will bring its specialty orthopedic implants operation and two or three employees to Maryland in the next few weeks, Mr. Roberts said.
Osteo-Technology's purchase of the veterinary division, which recorded $1.6 million in sales last year, includes the division's 77,000-square-foot manufacturing plant in Timonium, and both divisions will operate out of that building.
The companies would not disclose the purchase price of the division until the sale is complete. The deal comes two weeks after Kirschner announced it had restructured $17.3 million in debt held by Maryland National Bank.
Kirschner said in May it would close a medical equipment manufacturing operation to save money. The company has lost more than $20 million in the past two years.