Dynatronics agreed to acquire substantially all of the assets of Bird & Cronin, a Minneapolis-based manufacturer of orthopedic soft goods and specialty patient care products.

The purchase price was approximately $14.5 million, payable in cash and stock of Dynatronics, with an additional $1 million contingent payment payable 24 months following the closing based on post-closing revenues of the Bird & Cronin operating unit. The purchase price will be paid at closing by delivery of cash totaling $9.1 million and the issuance of $3.6 million in shares of Dynatronics series D preferred stock.

Dynatronics will fund the cash portion of the purchase price through borrowings under its existing asset-based lending facility, as amended, and through the offer and sale of the company’s series C preferred stock.

According to a related 8-K filing, Dynatronics amended its credit agreement with Bank of the West dated March 31, 2017 in order to increase the maximum principal amount of loans to the lesser of $11 million and a borrowing base. Under the amendment, Bird & Cronin was added to the facility as a borrower and wholly owned subsidiary of Dynatronics, and Bank of the West was permitted a security interest in all of its assets.

The acquisition will add to Dynatronics’ strong, long-standing relationships with hospitals, orthopedic specialists, universities, research facilities and other customers across the medical rehabilitation continuum of care, developed during the 45 years of Bird & Cronin’s operation as a closely held business.

Dynatronics manufactures, markets and distributes advanced-technology medical devices, treatment tables, rehabilitation equipment, orthopedic soft goods and supplies for the physical therapy, athletic training, sports medicine, chiropractic and related physical medicine markets.